Fund provider VanEck has filed an application with the SEC for the first spot-based Solana ETF in the US. Despite an extremely low chance of approval, the market reacted accordingly and Solana (SOL) recorded a price increase of 8.96%.
In January, the US Securities and Exchange Commission (SEC) approved the first spot-based Bitcoin ETFs. The products immediately broke all records and raised over USD 10 billion in assets within two months. VanEck, one of the providers, wants to replicate this success with a spot ETF on the cryptocurrency Solana (SOL), according to a filing with the SEC.
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Solana ETF: just a marketing gag?
VanEck's application follows a number of different applications for exchange-traded funds (ETFs) that hold or are based on cryptocurrencies. Naturally, product providers want to profit from the rush for Bitcoin ETFs. And the demand for alternative digital assets ("altcoins") also exists. However, crypto ETFs must first receive approval from the SEC. The mother of all cryptocurrencies, Bitcoin, has had to wait over ten years since its first filing for the green light. Ether (ETH) also only recently received approval following pressure from the White House.
An ETF on other cryptocurrencies like Solana seems unimaginable under the current SEC leadership. Since taking office, Chairman Gary Gensler has taken the questionable position that almost all cryptocurrencies other than Bitcoin are unregistered securities. Specifically, Solana (SOL) mentioned the agency in several lawsuits against crypto exchanges like Coinbase and Binance as an example of "crypto-asset securities." Realistically, a Solana ETF will be rejected accordingly after the nine-month deadline. VanEck probably wants to build a crypto-friendly image to score points with industry representatives.
Market prices in low probability
Nevertheless, the market reacted to the news. After all, the chance of a Solana ETF before the proposal was 0%. Even with an extremely low probability, the possibility of such a product now exists. In the hours following VanEck's ETF application, Solana gained +11.18%. Since then, the price has retreated somewhat.
