VanEck Plans Solana-Based ETF, Citing Regulatory Considerations
Cboe Exchange has confirmed that VanEck intends to launch a Solana-based Exchange-Traded Fund (ETF) following a 19b-4 filing with the US Securities and Exchange Commission (SEC). This move comes amidst growing interest in cryptocurrency ETFs, with XRP also gaining attention despite lacking a definitive ETF plan from VanEck.
Reasons Behind Choosing Solana Over XRP
Matthew Sigel, Head of Digital Assets Research at VanEck, explained that the decision to opt for Solana over XRP was primarily driven by technical and regulatory factors. In an interview with Tony Edwards of Thinking Crypto, Sigel emphasized Solana’s decentralized nature, highlighting that no single entity controls over 20% of the Solana network or has the ability to halt its operations completely. This aligns closely with SEC’s emphasis on decentralization in crypto evaluations.
- Sigel dismissed concerns about the lack of a regulated futures market for Solana, citing precedents where ETFs have been approved without such a market of significant size.
- He acknowledged that securing approval for a Solana ETF might be more straightforward under a different SEC chair, given the evolving regulatory landscape.
Challenges and Considerations for XRP
Regarding XRP, Sigel mentioned internal factors and market demand as hurdles for potential ETF consideration. He described the complex decision-making process involving stakeholders like exchanges, market makers, and custodians, all waiting for regulatory clarity before proceeding with an ETF based on the underlying asset.
Sigel also speculated on future developments, suggesting that once clarity is achieved for a Solana ETF, similar efforts may follow for other proof-of-stake coins, potentially leading to ETFs based on top cryptocurrencies.
At the time of writing, Solana (SOL) was trading at $142, reflecting a 0.68% decline over the past 24 hours.
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