VanEcks Filing of the First Solana ETF in the US Unveiling the Actual Motive
In the midst of the widespread embrace of digital currencies, primarily driven by big investors, VanEck, a notable issuer of Bitcoin ETFs, has taken a pioneering step by registering the inaugural Solana (SOL) exchange-traded fund (ETF) in the United States.
Matthew Sigel, VanEck US’s lead researcher for digital assets, revealed that the company submitted a proposal for a Solana ETF to the US Securities and Exchange Commission (SEC) on the 27th of June, a Thursday.
**Announcement Alert:**
#VanEck
Initiates
#Solana
Fund
!Solana Trust Announcement
— Coinpedia (@CoinpediaNews)
June 27, 2024
**The Rationale Behind a Solana ETF:**
The green light for spot Ethereum and Bitcoin ETFs in the US has led experts to anticipate the SEC’s nod for similar altcoin offerings soon. Institutional investors are showing a marked preference for altcoins to broaden their cryptocurrency holdings.
We’re thrilled to share that VanEck has lodged an application for the **FIRST** Solana exchange-traded fund (ETF) in the US.
Here’s our rationale for considering SOL a valuable asset.
**Our Motivation:**
Solana, a formidable rival to Ethereum, is an open-source blockchain platform crafted for…
!Solana Network
— matthew sigel, recovering CFA (@matthew_sigel)
June 27, 2024
Sigel notes that the Solana network has evolved into a thriving web3 hub, boasting close to $4 billion in total value locked (TVL). The network’s substantial stablecoin market cap, nearing $4 billion, has drawn a growing number of web3 developers, as evidenced by its dynamic meme coin community.
The US SEC’s recent declaration of discontinuing its probe into Ethereum for potential securities infractions has bolstered the reputation of altcoins.
**Market Consequences:**
VanEck’s move to file for a Solana ETF underscores the increasing integration of altcoins into mainstream finance.
Cryptocurrencies are reintroducing unpredictability and risk to the stock market.
— Pomp (@APompliano)
June 27, 2024
Post-announcement, the SOL’s valuation against the dollar leaped over 9%, reaching around $149 at the time of reporting. While a definitive decision on the Solana ETF is slated for 2025, with the prospect of a new administration in the US, it’s clear that Wall Street is gearing up for the altcoin sector.
**Also Worth Reading:**
Ethereum Maintains Key Support Level, Leading Analyst Foresees Breakout Potential
**Tags:**
Altcoins