Bitrabo Editorial
VanEck and 21Shares have submitted S-1 applications to the SEC for the inaugural Solana ETF, marking a significant advancement in the cryptocurrency sector.
Unlike the successful Bitcoin ETF market, the Ethereum ETF market is poised to begin trading soon.
Matthew Sigel, VanEck’s Head of Digital Asset Research, points out that the approval and trading prospects of the anticipated Solana ETF hinge on the upcoming US Presidential election due to differences in crypto regulation approaches and potential changes in SEC leadership impacting the approval process.
Sigel Advocates for Equitable Approval Process of Solana ETF
Sigel stresses the growing impact of crypto voters in elections and the evolving regulatory scene in Washington, indicating a shift from Democrats towards supporting crypto legislation.
The White House election race highlights contrasting digital asset regulation approaches between the Biden administration and former President Trump, who favored the industry.
Sigel raises concerns about the absence of a regulated Solana futures market potentially stalling ETF approval, pointing to SEC Chairman Gary Gensler’s influence in creating such conditions.
Considering the changing regulatory environment, Sigel remains optimistic about the approval of Solana ETFs even if Biden wins the election, emphasizing the pivotal role of the SEC chair and urging a fair and prompt approval process.
In a similar vein to Sigel, Alex Thorn, Head of Research at Galaxy Digital, analyzes the immediate Solana ETP filings by VanEck and 21Shares, emphasizing the impact of the FIT21 Act in defining regulatory boundaries between the SEC and the CFTC, crucial for future cryptocurrency regulation.
Thorn notes that such regulatory clarity could enhance ETP approval chances for digital currencies beyond Bitcoin and Ether, including Solana.
The journey ahead for Solana ETFs involves navigating regulatory challenges and uncertainties, with VanEck’s proactive filing history reflecting their strategic stance, possibly banking on the election outcome.
The fate of the Solana ETF rests on the election outcome, potential SEC leadership shifts, and ongoing regulatory scenario evolvements.
Current data shows Solana’s native token SOL trading at $141, influenced by the market downturn, resulting in a 5% price drop in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com