- Solana ETF products could hit the market as early as 2025, predicts Senior Bloomberg ETF Analyst James Seyffart.
- However, a key factor for this success will be a change in leadership at the SEC and possibly the White House.
- VanEck has already taken the initial step by applying for a Solana ETF with the SEC.
Explore the latest developments in the world of Solana ETFs and what the future might hold for crypto investments.
VanEck Paves the Way for Solana ETF
As reported by various sources, including CoinOtag, VanEck has filed a Form S-1 with the SEC, aiming to launch the first Solana ETF in the United States. This move makes VanEck the first company to propose this type of ETF, marking a significant milestone in the crypto ETF landscape. Close on its heels, Canadian investment firm 3iQ Corp has also submitted a preliminary prospectus to offer a Solana (SOL) Fund in Canada.
Why Solana ETF Could Be Next
Matthew Sigel, VanEck’s Head of Digital Asset Research, emphasizes that Solana’s functionality closely parallels that of Bitcoin and Ethereum, both approved by the SEC for ETFs. Bloomberg ETF Analyst Seyffart speculates that this initiative will be watched keenly by other issuers, potentially leading to more such filings. Despite the burgeoning interest, Seyffart remains cautious, estimating that it might take until 2025 for any approval, depending on changes in the SEC and White House leadership.
First SOL ETF filing in the U.S. Will be interesting to see if other issuers immediately follow suit. Early thoughts are that this only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then, not guaranteed.
— James Seyffart (@JSeyff) June 27, 2024
Growing Chorus for Spot Solana ETF
Discussions around Solana ETFs have gained momentum as multiple asset managers have filed for spot Ethereum ETFs. With the likelihood of spot Ethereum ETF approval at 70%, many market analysts believe that Ethereum’s acceptance could set a precedent for other altcoins, including Solana. According to Matrixport co-founder Daniel Yan, Solana stands to benefit significantly following a potential Ethereum spot ETF approval.
Once the SEC approved spot Ethereum ETFs on May 23, industry experts quickly turned their sights to Solana as the next big opportunity. Anthony Scaramucci, founder of SkyBridge Capital, recently revealed plans to pursue a spot Solana ETF actively. Other companies like BlackRock, Grayscale, Franklin Templeton, Fidelity, and Bitwise may also jump on the Solana ETF bandwagon, following VanEck’s lead.
After Solana, Could XRP Be Next?
Speculation is also rife about the introduction of an XRP ETF. Ripple President Monica Long has voiced support for an XRP ETF, citing the regulatory clarity surrounding XRP and Bitcoin in the United States. In a recent interview with CNBC, Long stated that an XRP ETF would be a logical step, given the existing regulatory environment.
Conclusion
The potential approval of a Solana ETF represents a monumental shift in the crypto investment landscape. With companies like VanEck leading the charge, and other significant asset managers likely to follow, the future looks promising. Investors should stay tuned for further developments, as new leadership in the SEC and White House could accelerate the timeline for approval. Given the current regulatory clarity, an XRP ETF could also soon be a reality, further expanding opportunities in the crypto market.
