“Solana ETFs May Come Sooner Than You Think” VanEck Researcher Optimistic on Historic Filing

TradFi giant VanEck won over the hearts of the Solana community earlier this year when the firm filed for the first-ever Solana ETF (Exchange Traded Fund) in the U.S.

Providing maximum support to the filing, VanEck Head of Digital Assets Research Mathew Sigel continues to champion the asset, contending that approval “may come sooner” than expected.

Sigel Counters Sentiment from Rival TradFi Players

Speaking with Scott Melker, host of the ‘Wolf of All Streets’ podcast, VanEck researcher Mathew Sigel argues against claims from other TradFi players, suggesting that Solana ETFs may not be so far away after all.

Earlier this week, BlackRock disappointed the Solana community when Chief Investment Officer Samara Cohen declared that the world’s largest asset manager wouldn’t be exploring a Solana ETF “in the near term.” Cohen cited Solana didn’t meet BlackRock’s investability criteria.

BlackRock and Samara Cohen are not alone in their thinking. Earlier this year, Ark Invest CEO Cathie Wood joined Wall St Journal’s ‘Take On The Week’ podcast, positing that “We’d be surprised to see anything but bitcoin and ether being approved by the SEC [U.S. Securities and Exchange Commission].”

Unsurprisingly, Sigel doesn’t share his competitor’s skepticism. Pointing towards the prevalence of a diverse range of crypto ETPs in European markets, Sigel remarked:

"We disagree with the notion that Bitcoin and Ethereum will be the only ETFs. The market in Europe already boasts a variety of crypto ETPs, including single coin and basket options, and we aim to lead this innovation in the U.S. as well."

As it happens, Solana is well-represented in European ETPs. According to ETFbook data, Solana accounts for 14.05% of AUM (Assets Under Management) by underlying cryptocurrency across European ETPs. 

This is an outsized representation, considering that Solana’s market capitalization compromises a mere 3.33% of the global market cap on the cryptocurrency market.

Additionally, a Solana-based ETP is the third-largest European ETP, with the 21Shares Solana Staking ETP totaling just over $1B in AUM.

Unsurprisingly, the SEC has been evasive when commenting on Solana ETF approvals. SEC Commissioner Hester Pierce remarked that she was "hesitant to comment" on the fate of the VanEck filing.

Pierce went on to clarify that every approval is considered on a "case by case basis". According to Pierce, the SEC will "take the existing precedent and apply it to whatever the facts and circumstances are".

Changes in the Courtroom

Sigel and, by extension, VanEck’s hopes were a speedy approval were spurred by the SEC’s recent motion to amend securities classifications in their ongoing lawsuit against Binance. 

On the 30th of July, the SEC proposed to withdraw its initial request that third-party assets like SOL, ADA, and MATIC be classified as securities in the Binance case. While the proposal will have no immediate impact on how SOL is regulated, the amendment may set a precedent for digital asset classification moving forward.

Ever the optimist, Sigel considers the amendment a positive sign for a potential Solana ETF approval. 

Regardless of what happens next in the Binance case, attention now turns to the upcoming U.S. Presidential Elections. This historic event is considered a landmark moment that will shape the future of cryptocurrency regulation in the U.S. and the likelihood of a Solana ETF approval.

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