VanEck’s pursuit of a Solana-based exchange-traded fund (ETF) has become a focal point in the ongoing dialogue between cryptocurrency innovators and regulators. Despite a series of setbacks, including the removal of a crucial regulatory filing by Cboe Global Markets, VanEck remains steadfast in its belief that Solana could be the next big commodity-based ETF, akin to Bitcoin and Ethereum.
The story began to take a twist when the Cboe removed its 19b-4 filing related to the Solana ETF from its website, sparking rumors and uncertainty. This filing is crucial because it sets in motion the process by which the U.S. Securities and Exchange Commission (SEC) reviews and potentially approves new ETFs. Without this filing, the path to approval becomes murky.
However, VanEck’s head of digital assets research, Matthew Sigel, was quick to address concerns. He emphasized that the removal of the Cboe filing does not equate to the abandonment of their Solana ETF ambitions. The S-1 prospectus, a key document filed by the issuer itself, remains active, indicating that VanEck is still moving forward with its plans. Sigel’s comments suggest that VanEck is actively engaging with regulators, working to address any concerns that have arisen during this complex process.
One of the major hurdles VanEck faces is the ongoing debate over whether Solana should be classified as a security or a commodity. This distinction is crucial, as the regulatory framework governing commodities is generally more favorable for the creation of ETFs. VanEck is arguing that Solana, much like Bitcoin and Ethereum, operates as a commodity. They highlight Solana’s decentralized nature, high utility, and its role in paying transaction fees and computational services on the blockchain. These characteristics, according to VanEck, align more closely with commodities than securities.
Despite VanEck’s optimism, the outlook for a Solana ETF remains uncertain under the current SEC administration. Many industry experts believe that the SEC, led by Chair Gary Gensler, is unlikely to approve a Solana ETF in the near future. Gensler has expressed skepticism about crypto ETFs outside of Bitcoin and Ethereum, and this sentiment seems to be influencing the SEC’s approach to Solana.
Adding to the complexity is the fact that the SEC has not yet formally started the approval process for Solana ETFs by filing the 19b-4s in the Federal Register. Without this step, the clock on the approval process doesn’t start, leaving VanEck and other potential issuers in a holding pattern.
Still, VanEck’s determination is clear. The firm continues to advocate for its position, arguing that the evolving legal landscape supports the idea that certain crypto assets, while they may act like securities in primary markets, behave more like commodities in secondary markets. This nuanced view could eventually sway regulators, but for now, the fate of a Solana ETF remains in limbo.
In the meantime, the situation has caught the attention of market watchers, with some suggesting that Solana ETFs might not see approval until a new administration takes over in Washington, potentially in 2025. Even then, approval is not guaranteed, making VanEck’s efforts a long-term bet on the changing regulatory environment.
For now, VanEck remains committed to its Solana ETF plans, navigating the challenges with a combination of legal advocacy and strategic patience. As the regulatory landscape continues to evolve, the crypto world watches closely, eager to see if Solana will indeed become the next commodity to anchor a successful ETF.
