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US Solana ETFs ‘Inevitable’ Following Brazilian Approval, Say Several Industry Experts
- VanEck, the first asset managers to file for a US-based Solana ETF, have declared they believe approval is “inevitable” following Brazil greenlighting the financial products.
- Some analysts in the industry believe the regulatory pathway to seeing SOL ETF approval is too convoluted.
- However, optimism is growing that the SEC will relent and allow US investors to trade Solana through the wrappers of an ETF.
As Ethereum ETFs in the United States start to hit their stride, the industry is now watching and waiting to see which crypto asset is next in line to be released as a spot fund. Solana (SOL), home to one of Web3’s brightest ecosystems, is likely “leading the race” for now. That said, many in the industry have downplayed hopes of a SOL ETF due to regulatory issues and a supposed lack of consumer interest.
Don’t tell that to asset managers VanEck though, who applied for a Solana ETF earlier this year. Though most believe a potential approval is likely months, if not years away, VanEck has doubled down on its belief a SOL-based crypto fund is on the cards.
Related: ETH vs SOL Battle Erupts Online Amid Ran Neuner’s Mixed Views on Ethereum
Brazil Approves Solana ETFs: America to Follow Suit?
VanEck’s optimism comes thanks to the Brazilian government approving an exchange-traded fund for a coin outside of Bitcoin and Ethereum. Earlier last week, Brazil greenlit SOL ETFs for trading on the nation’s stock exchange, breathing hope into the community that the USA may be on the same pathway.
Unfortunately, things may not be quite so simple for the United States, according to Markus Thielen, founder of 10x Research, in a statement to Decrypt.
The path to approval is complex…The SEC’s regulatory stance on cryptocurrencies like Solana, which could be classified as securities, introduces additional challenges. Furthermore, the absence of a robust Solana futures market…may further complicate and delay the approval process.
Markus Thielen, 10x Research Could Solana See ETF Approval Before the Year is Out?
Despite some misgivings, the community’s interest in a Solana ETF is heating up, with VanEck’s Head of Digital Assets Research, Matthew Sigel, suggesting such a product is “inevitable.”
Brazil’s approval of a SOL ETF signals that a US counterpart isn’t just a possibility – it’s as inevitable as the next block in the chain.
Matthew Sigel, VanEck Similarly, Manthan Dave, co-founder of Ripple-backed digital asset custody platform, Palisade, was bullish on the prospects of a SOL ETF sooner rather than later.
Brazil has been one of the pro-crypto jurisdictions since they introduced the Bitcoin and Ethereum ETFs – years before the United States did…People in the US have been asking for a Solana ETF and now they might get it.
Manthan Dave, co-founder Palisade Dave even went on to suggest a timeline for a potential approval.
Considering the current election season and the prevailing sentiment, it is likely that we will see the approval of Solana ETFs before the end of this year. The key question is whether this will happen before or after the elections. With the Republicans currently seen as pro-crypto, approval before the election could significantly influence market sentiment.
Manthan Dave, co-founder Palisade Related: BlackRock, Fidelity Combined Hold Almost 2.5% of Total BTC Supply in Their ETFs
While the discussion continues, one of Solana’s highest-growth networks, Sonic, surpassed one million active users.
Solana has climbed 12% over the past seven days of trading.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
