Spot Solana ETF in the US Hinges on Regulatory Shift, Says Bloomberg Analyst
Summary:
The prospect of a spot Solana (SOL) exchange-traded fund (ETF) in the US depends on changes within the regulatory body, according to Bloomberg analyst Eric Balchunas. VanEck's spot Solana ETF proposal to the SEC aims to capitalize on Solana's features, although approvals remain uncertain due to the absence of Solana futures ETFs. Analysts suggest a new regulatory leadership, hinted for 2025, could change this scenario. Meanwhile, venture capital firms highlight the need to address SOL's security status. Despite some skepticism, Solana has seen global investment exceed $1 billion.
Bloomberg ETF analyst Eric Balchunas suggests that a spot Solana (SOL) exchange-traded fund (ETF) in the US could only become a reality if there is a shake-up in the regulatory system and its leadership. VanEck, the ETF issuer, surprised the market on June 27 by filing a spot Solana ETF application with the US Securities and Exchange Commission. Matthew Sigel, VanEck's digital assets research chief, noted that the new VanEck Solana Trust fund would look to profit from the decentralized nature, superior functionality, and economic viability of Solana. Despite this, Balchunas voiced skepticism about the ETF being greenlit, as there were no existing Solana futures ETFs in the US. Since the SEC had concerns over potential fraud and market exploitation affecting spot ETF products, Bitcoin (BTC) and Ether (ETH) only launched spot ETFs post the introduction of futures products. However, with a new potential President and SEC leadership in 2025, things might change, Balchunas indicated in a June 27 X post, adding that Hester Peirce or someone similar might excel in running the SEC. Jake Chervinsky, Variant Fund’s lead legal officer, aligned himself with Balchunas, pointing out that a Peirce-led SEC might be more accommodating of spot Solana ETF applications. The SEC and Chair Gary Gensler have previously considered SOL tokens as a security in lawsuits against Binance and Coinbase. On the other hand, venture capital firm Cinneamhain Ventures partner Adam Cochran felt VanEck could have addressed SOL's disputed security status before filing for a spot Solana ETF. Anthony Pompliano, a Bitcoin supporter, interpreted the ETF filing as a positive sign for altcoins. However, Wintermute CEO Evgeny Gaevoy predicted minimal investment in the upcoming spot Ether ETFs, which he believes would indicate an even smaller market for spot Solana ETFs. The possible US Solana spot ETF filing comes on the back of North America's first spot Solana ETF application in Canada by 3iQ, a cryptocurrency asset manager, the previous week. Solana’s ecosystem and network have attracted positive feedback from Franklin Templeton, a $1.5 trillion asset manager. Globally, over $1 billion in Solana ETF products are already in circulation, according to Bloomberg ETF analyst James Seyffart, referencing data as of June 20.
Published At
6/28/2024 3:49:34 AM
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