By Nitesh
Key Points
- 21Shares files spot Solana exchange-traded funds with SEC.
- VanEck also applies for a Solana ETF.
- SOL wants to replicate Bitcoin and Ethereum ETFs.
- Near-term approval is questioned by industry pundits.
In the ever-changing world of digital currencies, 21Shares has taken a commendable step forward by seeking regulatory approval for a spot Solana exchange-traded fund (ETF).
This filing comes soon after VanEck made an application for a Solana (SOL) Trust, which suggests that there is growing confidence in the potential of this nascent crypto asset among institutional investors.
The Spotlight on Solana
This makes it the second such filing in recent times; thus placing it alongside giants like Bitcoin (BTC) and Ethereum (ETH) in their respective landscape.
This follows an introduction of Bitcoin ETFs and an anticipated approval of Ethereum ones thereby showing that cryptocurrency ETFs are more acceptable and interesting now.
Both companies have chosen not to include any staking features in their respective plans, illustrating what seems to be becoming a common trend in many crypto-backed exchange-traded fund bids.
The move may be seen as cautious since they can easily face any regulatory challenge by focusing on the value proposition at hand rather than providing any side services that might be connected to this issue.
BREAKING: ArkInvest/21Shares files for spot Solana ETF pic.twitter.com/ca8jIijss5
— Altcoin Daily (@AltcoinDailyio) June 28, 2024
Industry Reactions And Expert Opinions
However, despite all this excitement around filings, experts remain skeptical. Evgeny Gaevoy, CEO at Wintermute believes that spot Solana EFT will not receive near-term approval before probably next year.
Gaevoy mentioned low inflow numbers into Ethereum EFTS as another possible headwind against any other cryptocurrency investment product.
These ETF filings have consistently referred to Solana as a commodity rather than a security throughout. It’s in line with Ethereum ETF issuers’ approach and in support of Solana’s inclusion in the ETF market.
Matthew Sigel, head of digital assets research at VanEck, stressed the utility of Solana as a digital commodity by highlighting its role in transaction fees and blockchain computational services.
A Vision For Decentralization
Solana’s decentralization was also emphasized by Sigel who observed that no intermediaries or any single entity are controlling the SOL network. This decentralized arrangement further underpins Solana being declared as a commodity besides its future value proposition across various applications ranging from DeFi to NFTs.
Reaction To The Filling By The Industry And Expert Opinions
The fate is uncertain as these documents are undergoing an evaluation process with the SEC. Approval of such an ETF for Solana can open doors for more institutional investment into SOL thus giving it more credibility within the ecosystem of cryptocurrency.
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