SOL Surges After VanEck Becomes First in US to File for Solana ETF

VanEck has become the first US asset manager to file for a spot Solana ETF with the US Securities and Exchange Commission (SEC).

Matthew Sigel, VanEck head of digital assets research, explained that the firm filed for the product because "We believe Solana stands out as a powerful and accessible blockchain software."

"We think this combination of high throughput, low fees, robust security, and a strong community vibe makes Solana an attractive option for an exchange-traded fund, offering investors exposure to a versatile and innovative open-source ecosystem," he added, highlighting how Solana is a competitor to Ethereum.

Earlier this week, the Solana Foundation, a non-profit organization promoting the Solana blockchain, announced the release of "Actions" and "Blinks," designed to streamline crypto transactions across various platforms.

Solana Actions empowers developers to integrate blockchain transactions directly into websites, social media, and even physical QR codes.

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VanEck's filing comes less than a week after digital asset management firm 3iQ filed for a similar Solana ETF on the Toronto Stock Exchange (TSX) with the Ontario Securities Commission.

Bloomberg Intelligence ETF analyst James Seyffart responded by suggesting the products could launch in 2025 if there is a "new admin in the White House and SEC."

News of VanEck's filing triggered a surge of 8% in the price of SOL, although the cryptocurrency is still down more than 12% over the month.

Market maker GSR believes SOL will outperform Bitcoin, stating that it "continues to distance itself from the pack."

"Underlying Solana’s success is its superior technology, which, in our opinion, provides a sustainable competitive advantage and is exemplified by three particularly notable items," GSR argued.

Solana's proof-of-history, its parallel transaction processing, and its falling costs over time position it to "be the first to truly solve the blockchain trilemma and ultimately achieve its vision of synchronizing global state at the speed of light," GSR added.

Analysts at brn are enthusiastic about SOL's prospects but slightly more cautious:

"The SEC still sees SOL as a security rather than a commodity, reducing the likelihood of immediate approval for the filing. Unlike Bitcoin and Ethereum, Solana lacks regulated futures tracking its price before filing for an ETF. However, VanEck's filing represents progress towards crypto mass adoption and enhances public awareness of various cryptocurrencies."

"We recommend keeping a close watch on this cryptocurrency. Solana's speed and lower transaction costs compared to Ethereum position it as a strong future contender. Its smaller current market size (15% of Ethereum’s) makes potential ETF inflows particularly noteworthy."

VanEck recently filed its 8-A form for its spot Ethereum ETF, leading many to regard the move as a signal that the products could be launching soon.

The 8-A form is a registration document that companies file with the SEC to register a class of securities for trading on a national securities exchange.

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It offers basic information about the company and the securities being listed and is normally issued by firms that are already complying with SEC reporting requirements and looking for a simpler and quicker registration process.