A potential Solana (SOL) exchange-traded fund (ETF) in the United States hinges on forthcoming leadership changes within the administration and its securities overseer, Bloomberg’s ETF analyst Eric Balchunas suggests.
VanEck, an ETF issuer, surprised the market on June 27 by submitting a filing for a spot Solana (SOL) ETF to the U.S. Securities and Exchange Commission (SEC). According to Matthew Sigel, head of digital assets research at VanEck, the proposed VanEck Solana Trust aims to leverage Solana’s decentralized framework, robust utility, and economic viability.
Balchunas, however, expressed initial skepticism, citing the absence of Solana futures ETFs in the U.S. as a potential barrier to approval. He noted that historically, products like Bitcoin (BTC) and Ether (ETH) had futures offerings before spot ETFs, due to SEC concerns about fraud and market manipulation risks impacting spot ETFs.
Balchunas speculated in a June 27 post that a change in U.S. presidential leadership and SEC governance by 2025 could alter these dynamics.
Jake Chervinsky, chief legal officer at Variant Fund, echoed similar sentiments, highlighting Hester Peirce’s interpretation of the Securities Exchange Act as potentially favoring spot Solana ETF applicants. The SEC, led by Chair Gary Gensler, has categorized SOL as a security in legal actions against Binance and Coinbase.
Despite these regulatory challenges, opinions vary on the potential success of a Solana ETF. Adam Cochran, a partner at Cinneamhain Ventures, suggested addressing SOL’s security classification prior to VanEck’s ETF filing would have been prudent.
The news garnered enthusiastic feedback from Anthony Pompliano, a prominent Bitcoin advocate, who has recently shown greater warmth toward the broader cryptocurrency market. However, Evgeny Gaevoy, CEO of Wintermute, expressed skepticism, forecasting limited investor interest in forthcoming spot Ether ETFs and potentially even less for a spot Solana ETF.
In related developments, cryptocurrency asset manager 3iQ recently filed for a spot Solana ETF in Canada, marking a milestone in North America. Franklin Templeton, managing assets worth $1.5 trillion, has also praised the Solana ecosystem and network in recent months.
According to Bloomberg’s ETF analyst James Seyffart, more than $1 billion worth of Solana exchange-traded products are already available globally, including offerings like the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe, as of June 20.
The landscape continues to evolve amid ongoing regulatory scrutiny and market dynamics, with significant implications for the future of Solana’s ETF prospects in both the U.S. and international markets.