- VanEck, a wealth manager, has added a Solana trust to its growing portfolio of cryptocurrency-related products.
In a filing with the Securities and Exchange Commission (SEC) on Thursday, Spot Bitcoin (BTC) ETF issuer and asset management VanEck made the first-ever offer for a Solana (SOL) exchange-traded fund in the United States. Shortly after the news broke, the price of SOL increased by more than 8%, according to CoinMarketCap data.
As the company looks to expand into more cryptocurrency-backed investment vehicles, the so-called VanEck Solana Trust will follow and reflect the performance of SOL prices, according to the paper.
In keeping with updating prospectus filings for Ethereum (ETH) ETFs on the spot, VanEck emphasized in its filing that its Solana Trust would not be staked.
No action involving the use of any portion of the Trust’s SOL for staking prizes, obtaining more SOL, or producing income or other earnings will be taken by the Trust, the Sponsor, the SOL Custodian, or any other party connected to the Trust, either directly or indirectly. View the SEC filing dated June 27.
Matthew Sigel indirectly contested statements made by the SEC and Michael Saylor’s opinion that SOL is an unregistered security in a statement pertaining to the application. Sigel contended that, like Bitcoin and Ethereum, Solana is a commodity.
Is an ETF for Solana inevitable?
VanEck most likely added this clause in order to follow what is believed to be SEC guidance, which presently favors categorizing staking operations as securities under federal securities laws.
The application was made in advance of the highly expected approvals for spot Ether ETFs following the successful January launch of multiple Bitcoin equivalents.
Furthermore, Solana co-founder Raj Gokal and Ripple CEO Brad Garlinghouse, among other analysts and business heavyweights, expressed confidence in VanEck’s proposal, stating that a SOL ETF was only a matter of time.
Additionally, the news shows asset managers’ confidence in the face of a political tailwind in the US before the winter elections. Both presidential candidates have used language that is supportive of cryptocurrencies, with Donald Trump taking a more assertive stance and Joe Biden’s administration indicating a desire to talk about regulations pertaining to digital assets.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
