By Tom Blitzer
Key Insights:
- VanEck’s Sigel is optimistic about Solana ETF approval despite regulatory challenges and the absence of a futures market.
- According to Matthew Sigel, successful European deployment positions VanEck well for Solana ETF approval in the US.
- The competitive landscape for Solana ETFs heats up with filings from 3iQ and 21Shares, aiming for mid-March 2025 approval.
VanEck’s Head of Digital Assets Research, Matthew Sigel, recently expressed optimism regarding the US Securities and Exchange Commission (SEC) ‘s approval of a Solana Exchange-Traded Fund (ETF). In a recent interview, Sigel emphasized that the absence of a regulated futures market should ensure the approval process for the Solana ETF.
Matthew Sigel is confident about VanEck’s Solana ETF’s approval. He argues that the Solana ETF can gain approval despite the regulatory landscape, which typically emphasizes the necessity of a robust futures market. Sigel pointed out that sectors like uranium have succeeded without a significant futures market, challenging the conventional wisdom surrounding ETF viability.
VanEck’s approach to the Solana ETF focuses on the blockchain’s decentralization and utility. Sigel noted, “When we examined the language around decentralization and characteristics of the blockchain… the ETH and SOL assets at this point are fundamentally the same.” This perspective supports VanEck’s belief that Solana qualifies as an ETF asset due to its decentralized nature and utility as a commodity.
Regulatory Landscape and International Experience
The regulatory environment in the United States often demands a sizable, regulated futures market for ETF transparency and price formation. However, Sigel remains hopeful, stating, “We think this can be done but might need a different SEC chair.” He highlighted VanEck’s successful deployment of Solana ETFs in Europe for nearly three years, demonstrating the firm’s capability to navigate regulatory hurdles and market dynamics.
Sigel also mentioned the Canadian market, where 3iQ, another significant financial entity, has filed for a Solana Fund. VanEck faces competition from 21Shares, which has also filed for a Solana ETF. These firms recently submitted the 19-b4 filings for their Solana ETFs, with Bloomberg’s ETF analyst Eric Balchunas providing a mid-March 2025 deadline.
Spot Bitcoin and Ethereum ETFs
In addition to discussing Solana, Sigel reflected on the success of Spot Bitcoin ETFs, noting their substantial performance and positive reception from investors. He commented, “To have $16 billion in these products after six months… alerted the world that this asset class is here to stay.” Sigel emphasized the role of institutional investors in driving the early adoption of these financial products.
Regarding Ethereum ETFs, Sigel acknowledged progress under SEC Chair Gary Gensler’s leadership. He mentioned, “Gary Gensler described the Ethereum ETF process as running smoothly,” indicating potential approval pathways. However, he also highlighted challenges, such as the absence of staking rewards in US products, which could affect their attractiveness compared to global counterparts.
SEC Regulation and Legal Developments
Sigel discussed the regulatory inconsistencies highlighted by recent court rulings in Ripple and Binance cases. He remarked, “Federal judges ruling that secondary sales of assets like XRP or BNB are not securities transactions… are very positive for the Coinbase suit.” These rulings favoring decentralization could impact ongoing regulatory discussions.
Sigel believes that the necessity of a futures market for the approval of spot Ethereum, Solana, and other crypto ETFs is a perspective held by SEC Chair Gary Gensler. He also emphasized the need for a new SEC Chair for clearer regulatory guidance.
Competitive Landscape and Future Outlook
The competitive landscape for Solana ETFs is becoming increasingly dynamic. VanEck’s international experience with Solana ETFs positions it advantageously in the market. The firm has successfully navigated the regulatory environment in Europe, which could provide a blueprint for similar success in the United States.
The interest in Solana ETFs is not limited to VanEck. Other financial firms, such as 3iQ and 21Shares, are also seeking approval for their Solana ETFs. The recent filings and the mid-March 2025 deadline set by Bloomberg’s ETF analyst Eric Balchunas indicate a growing interest in this asset class.
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