VanEck, a major player in the cryptocurrency market, is determined to launch its Solana ($SOL) exchange-traded fund (ETF), even after a key regulatory filing was withdrawn by Cboe Global Markets.
This filing was supposed to pave the way for the Solana ETF to be listed on Cboe’s exchange.
The exchange operator’s removal of its filing, which proposed listing the Solana ETF on its platform, had sparked concerns within the crypto community.
However, VanEck quickly addressed these concerns, clarifying that their plans remain unchanged.
On 9 August, many noticed that Cboe’s 19b-4 filing, which is needed for listing new ETFs, was no longer on their website. This led to speculation that the Solana ETF might be in trouble.
But VanEck’s Head of Digital Assets Research, Matthew Sigel, reassured everyone in a post on X.
He explained that while exchanges handle these 19b-4 filings, the responsibility for the ETF’s prospectus, known as the S-1 filing, lies with VanEck. He confirmed that their prospectus is “still in play”.
VanEck’s plan for Solana ETF
VanEck’s pursuit of a Solana ETF comes as interest in crypto-based ETFs grows, especially after the successful launch of Bitcoin ($BTC) and Ethereum ($ETH) ETFs earlier this year.
These ETFs used a special “grantor trust” structure, usually for funds that hold a single type of commodity. This structure could influence how future ETFs, including Solana, are approved.
Sigel noted that VanEck views Solana as a commodity, similar to Bitcoin and Ethereum. This view aligns with recent legal trends where some crypto assets, while initially seen as securities, are now being treated more like commodities in secondary markets.
VanEck is committed to working with their exchange partners and regulators to ensure their ETF meets all the required standards.
The SEC has been cautious in approving crypto-based ETFs, carefully examining each proposal. The success of the Bitcoin and Ethereum ETFs has provided a possible path for Solana.
If approved, the Solana ETF would be a significant achievement for VanEck and the broader crypto market. VanEck’s determination to continue despite obstacles shows their confidence in Solana’s potential.
Solana’s promise and challenges
Solana is a blockchain platform known for its fast and scalable technology. It can process over 65,000 transactions per second at a low cost, thanks to its Proof-of-History (PoH) and Proof-of-Stake (PoS) mechanisms.
This makes it a strong competitor to Ethereum and has attracted many developers to its ecosystem.
The idea of a Solana ETF in the US has excited investors, as it suggests wider acceptance of Solana in traditional financial markets.
If VanEck’s ETF is approved, it would allow investors to gain exposure to Solana without buying the cryptocurrency directly, potentially increasing institutional interest.
However, Solana’s history of network outages is a concern for regulators. The network suffered a major outage in February 2024, along with several others since its launch.
These issues have often hurt $SOL’s price, raising questions about the network’s reliability.
As of writing, Solana is trading at $147.82, down from its all-time high of $259.52 in November 2021. Despite these challenges, some analysts, like Ryan Lee from Bitget Research, believe that Solana could become the third major cryptocurrency, after Bitcoin and Ether, if it secures its own ETF.
VanEck’s continued push for the Solana ETF, despite the regulatory and market challenges, highlights the importance of this development for the crypto industry.
As the regulatory process continues, many will be watching closely, as the approval of a Solana ETF could have a significant impact on the market.
