- VanEck hints at introducing a spot Solana ETF due to significant interest at a Bitcoin conference.
- VanEck CEO Jan van Eck is skeptical about the near-term approval of a Solana ETF, citing political factors.
- Solana (SOL) surpasses Binance Coin (BNB) to become the fourth-largest cryptocurrency by market capitalization.
VanEck poses the potential of a spot Solana ETF amidst rising investor interest, although regulatory hurdles remain.
VanEck Signals Potential Spot Solana ETF Rollout
At a recent Bitcoin conference, VanEck hinted at the possibility of rolling out a spot Solana ETF, responding to significant interest from attendees. With the recent approval of Ethereum ETFs, the focus is shifting towards Solana. VanEck’s recent post on X indicates a robust appetite for a Solana ETF, suggesting ample liquidity that could meet SEC requirements. However, opinions vary within the industry. Robert Mitchnick, BlackRock’s Head of Digital Assets, argues against the need for more crypto ETFs, highlighting that altcoins, excluding Ethereum, form less than 5% of the total crypto market cap.
Solana Surpasses Binance Coin in Market Cap
In a recent development, Solana has overtaken Binance Coin to secure the position of the fourth-largest cryptocurrency by market capitalization. This significant leap marks the first time in four years that Solana has outpaced BNB, underscoring its latest surge in market value. Notably, the sentiment data points to this milestone, signaling growing investor confidence in Solana’s future prospects.
VanEck CEO on Solana ETF’s Political Roadblocks
During an interview on CNBC’s Squawk Box, VanEck CEO Jan van Eck expressed skepticism about the imminent approval of a Solana ETF, despite the successful launch of Ethereum ETFs. He suggested that the approval of a Solana ETF is more likely if the Republican Party wins the upcoming US Presidential election, referencing the perceived anti-crypto stance of the current Democratic administration. Van Eck also noted that the investor interest in Ethereum ETFs is much lower compared to Bitcoin, with flows amounting to only 10% to 20% of Bitcoin’s levels.
Technical Analysis of Solana
On the daily technical chart, Solana is exhibiting bullish tendencies, trading above key exponential moving averages. Indicators such as the MACD also support this positive outlook, with both the signal line and MACD line situated in the bullish zone, further reinforcing the bullish momentum in Solana. As of the current trading session, Solana is priced at $184.74, reflecting an intraday gain of 0.94%. With a market capitalization of $85.66 billion and a 24-hour trading volume of $2.46 billion, Solana continues to appeal to investors. Over the past week, Solana has seen a growth of 8.95%, and over the past month, it has risen by 34.84%, contributing to a year-to-date return of 81.28% as per Tradingview data.
Conclusion
The speculated launch of a spot Solana ETF by VanEck has sparked significant interest, particularly in light of the recent success of Ethereum ETFs. Although regulatory approval appears elusive, particularly under the current US administration, potential political shifts could open the door for additional crypto ETFs. Solana’s impressive performance and bullish technical indicators solidify its stance as a formidable player in the crypto market, continuing to attract investor interest and confidence.
