Exclusive Interview with VanEck Executive on Solana ETF Approval

During a recent interview, Matthew Sigel, Head of Digital Assets Research at VanEck, expressed confidence in the potential approval of a Solana Exchange-Traded Fund (ETF). Despite challenges posed by the absence of a regulated futures market, Sigel believes that the approval of a Solana ETF is feasible. He highlighted that while the conventional belief links ETF viability to the existence of a robust futures market, examples from sectors like uranium demonstrate that this correlation does not always dictate market success.

Launching of Solana ETF

Sigel emphasized VanEck’s approach to launching a Solana ETF, which involves a thorough analysis of the decentralization and utility characteristics of the Solana blockchain. He pointed out that the decentralization and blockchain characteristics of both ETH and SOL assets are fundamentally similar at this point.

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VanEck considers Solana’s decentralized nature and its utility as a commodity as qualifying factors for inclusion as an ETF asset, particularly due to its role in providing access to a substantial open-source App Store. Despite the current regulatory landscape in the United States, where a significant futures market is typically seen as essential for ETF approval, Sigel remains optimistic.

He acknowledged the regulatory focus on a sizable, regulated futures market for transparency and price formation, but expressed confidence that the approval could be obtained with potential changes in leadership at the SEC. Additionally, Sigel highlighted VanEck’s successful deployment of Solana ETFs in Europe for nearly three years, leveraging their operational history to navigate regulatory hurdles and market dynamics for innovative financial products.

The discussion also touched on the Canadian market, where financial players like 3iQ and 21Shares have filed for a Solana Fund, adding to the competition. Bloomberg’s ETF analyst, Eric Balchunas, has suggested a mid-March 2025 deadline for these ETFs.

Sigel’s on Spot Bitcoin ETF and SEC

Sigel also discussed the performance and investor reception of Spot Bitcoin ETFs, highlighting the role of institutional investors in early adoption and acknowledging the regulatory progress related to Ethereum ETFs under Gary Gensler’s leadership at the SEC. However, he also cited challenges such as the absence of staking rewards in US products, which could impact attractiveness relative to global counterparts.

In discussing SEC regulation under Gensler, Sigel provided nuanced perspectives on regulatory inconsistencies and the impact of court rulings in cases involving Ripple and Binance against SEC allegations. He suggested the necessity of a futures market for spot Ethereum, Solana, and other crypto ETF approvals and highlighted the need for a new SEC Chair for better regulatory clarity.

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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
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