The competition to launch the first US spot Solana (SOL) exchange-traded fund (ETF) has intensified, fueled by institutional interest and political considerations leading up to the November elections. Asset manager VanEck has taken the lead by filing with the Securities and Exchange Commission (SEC) to launch a spot Solana ETF, closely followed by 21Shares.
Political Calculations and Regulatory Hurdles
Analysts perceive VanEck's move as a strategic maneuver tied to the upcoming election. Under the current SEC administration, known for its cautious approach towards crypto ETFs, particularly those lacking federally regulated futures markets, a spot Solana ETF might face rejection. However, a potential shift in the White House and SEC leadership towards more crypto-friendly policies could change this trajectory.The SEC's recent classification of SOL as a security in actions against major exchanges adds another layer of complexity. This, combined with the absence of a well-established regulated derivatives market, poses challenges for spot Solana ETF approvals.
Industry Perspectives and Optimism
Despite these challenges, Matthew Sigel, head of research at VanEck, remains optimistic, emphasizing Solana's decentralized network and market demand similar to Ethereum. He believes now is the opportune time for SOL ETF approval, amidst speculation of an impending Ethereum ETF launch. Bloomberg's Eric Balchunas has also suggested an approval could occur as early as the July 4 holiday week.
Conclusion
While the race for the first US spot Solana ETF approval gains momentum, regulatory hurdles and political uncertainties persist. The outcome of the November election and potential changes in SEC leadership could significantly impact the future of Solana ETFs in the US market.
June 2024, Cryptoniteuae