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VanEck Files Solana ETF, Firm's Research Theorizes Bull Case of $3,211 SOL by 2030

TradFi Giant VanEck becomes the first institutional firm to file for a Solana ETF, citing “better user experience” as a key factor to alternatives.

solana vaneck
solana vaneck
June 27, 2024 by Finn Miller

TradFi Giant VanEck becomes the first institutional firm to file a Solana ETF, citing “better user experience” as a key factor to alternatives.

At 1:37 PM, UTC, institutional investment firm VanEck took to 𝕏 to announce the filing of the VanEck Solana Trust. 

The landmark filing comes amidst uncertainty surrounding the SEC’s approval of Ethereum ETFs and makes VanEck the first institutional fund to file a Solana Fund.

Why Solana? VanEck Weighs In

Supporting the TradFi giant’s ETF filing, VanEck’s Head of Digital Assets Research Matthew Sigel lauded "the Solana blockchain’s unique combination of scalability, speed, and low costs”, suggesting that it offers a “better user experience for many use cases” when compared to alternative blockchains.

Sigel went on to declare that VanEck positioned Solana as a “powerful and accessible blockchain software” making it an attractive option for an exchange-traded fund. VanEck is yet to announce a ticker for the fund, or any associated fees.

This isn’t the first time that VanEck has shown considerable support for the Solana network. In an October 2023 research report co-authored by Sigel and Patrick Bush, Senior Investment Analyst at VanEck, the firm outlined several future valuation scenarios for the digital asset, with a bull case proposing SOL at $3,211 per token by 2030.

vaneck solana research report

However, these lofty figures should be taken with a grain of salt. The report also suggested bearish conditions could see SOL trading as low as $10 in the same period.

Market Reacts to ETF Excitement

Solana bulls rejoiced as markets reacted positively to the landmark announcement. In the minutes following the event, Solana surged over 10% to reclaim a key level at $150.

Commentators on social media platforms like 𝕏 are buoyed by the news, celebrating a positive week for Solana that included the announcement of other catalysts like ZK Compression and Solana Blinks. Other analysts have pointed to theoretical price based off the Grayscale SOL Fund, implying an alternative SOL valuation.

However, some commentators expressed contrarian opinions, arguing that the approval of a Solana ETF was unlikely to be confirmed anytime soon, due to political restructuring in the coming months.

Regardless of whether or not the VanEck Solana Trust is approved, the announcement demonstrates growing demand from institutional investors to provide cryptocurrency-based options to their clientele.

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