Bitrabo Editorial
Matthew Sigel, VanEck’s Head of Digital Assets Research, discussed the rationale behind opting for a Solana-based Exchange Traded Fund (ETF) rather than XRP in a conversation with Tony Edwards from Thinking Crypto. The decision was influenced by Solana’s blockchain similarities with Ethereum and its decentralized structure.
Comparing Solana to Ethereum
Sigel highlighted the technical and regulatory similarities between Solana and Ethereum that shaped VanEck’s decision-making process. He emphasized the decentralization aspect, stating that VanEck views Solana and Ethereum assets as fundamentally alike, with no single entity controlling a significant portion of Solana or having the ability to unilaterally halt the chain.
This alignment with Ethereum’s decentralization model is crucial for regulatory approval, especially from the SEC, which emphasizes the importance of decentralized control in evaluating cryptocurrency assets.
Despite the absence of a well-established regulated futures market for Solana, which is often seen as crucial for ETF approval, Sigel expressed optimism based on precedents in other markets like power and shipping. He suggested that such precedents could pave the way for a spot Solana ETF, even though regulatory approval might be more attainable under a different SEC chair following US elections.
Sigel also touched on the current regulatory landscape, citing the legal disputes between the SEC and various crypto companies like Coinbase and Ripple. He described the situation as “schizophrenic” due to conflicting court rulings in recent cases.
When asked about the possibility of launching an XRP-based ETF, Sigel approached the topic cautiously, citing the complex decision-making process involved in introducing new ETFs in the crypto sector.
Sigel outlined the various stakeholders required for launching an ETF, including regulators, issuers, market infrastructure providers, and end consumers, highlighting the need for alignment among them. He pointed out obstacles for XRP-based ETFs, particularly in terms of internal conviction and customer demand.
Looking forward, Sigel hinted at VanEck’s broader ambitions for crypto ETFs, referring to their existing products in Europe. He proposed a strategic roadmap for potentially introducing similar products in the US, pending regulatory approval and market conditions.
Currently, SOL is trading at $142.