VanEck files for first-ever US Solana ETF, targeting DeFi growth

VanEck has registered its initial exchange-traded fund (ETF), the VanEck Solana Trust, which will help investors understand Solana (SOL), a blockchain with enormous output and cost-effective transactions. 

This is following the Securities and Exchange Commission (SEC) ‘s leaning towards spot bitcoin and Ethereum ETFs. Incidentally, 3iQ was instrumental in carrying out a similar registration in Canada. 

The Head of Digital Asset Research at VanEck, Matthew Sigel, attributed Solana’s decentralized character, its usefulness, and economic viability to the latest ETF. Solana’s blockchain is well known because it proves history and proof of stake systems, creating a viable opportunity for retail and institutional investors. The network’s combined upgradability, acceleration, and cost-effectiveness pave the way for its positioning alongside Ethereum. 

Sigel stressed the fact that SOL, similar to bitcoin and ether, acts in the form of an online commodity. Its utilization is for making payments towards transaction fees and computation solutions on blockchain. It can also be used for trading on online asset bases and for peer-to-peer transactions. 

The registration of the Solana ETF has had a favorable influence on the market. The SOL token increased by nearly 8% in a short while. Towards the early part of the year, the consent for bitcoin ETFs turned out to be a landmark in the crypto space. According to analysts, the release of Ethereum ETFs could bring in $5 billion in net inflows in the initial five months. 

Since talks around a Solana ETF were expected to commence next year, VanEck has prepared itself for it from the present. Cryptocurrencies like Ripple’s XRP are also being considered upcoming ETFs.