VanEck and 21Shares Submit Applications for First-Ever Spot Solana ETF, But Presidential Election Outcome Could Impact Approval

Asset managers VanEck and 21Shares have officially submitted S-1 applications to the US Securities and Exchange Commission (SEC) for the first-ever spot Solana ETF.

Asset managers VanEck and 21Shares have officially submitted S-1 applications to the US Securities and Exchange Commission (SEC) for the first-ever spot Solana ETF.

This follows the successful Bitcoin ETF launch in January and the anticipated trading of Ethereum ETFs in the coming week.

However, the road to Solana ETF launch may not be as straightforward. Matthew Sigel, VanEck’s Head of Digital Asset Research, has highlighted that the approval and potential trading of the Solana ETF market heavily depends on the outcome of the upcoming US Presidential election.

The reason? Different approaches to crypto regulation and potential changes in SEC leadership could significantly impact the approval process.

During a recent Bloomberg interview, Sigel emphasized that the approval and potential trading of the Solana ETF market heavily depend on the election outcome.

This is due to the significant differences in approaches to crypto regulation between political parties and the potential change in SEC leadership.

President Biden’s administration has generally taken a more cautious and regulatory approach to cryptocurrencies. While not outright hostile, they have emphasized the need for greater oversight and consumer protection.

On the other hand, former President Trump initially had anti-crypto views but later his view changed. Now he seems more supportive of the industry compared to the Biden administration.

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Sigel pointed out the growing influence of crypto voters in the election and a changing regulatory environment in Washington.

“We’re already seeing a change in the regulatory environment at the elected official level. Multiple Democrats voting for pro-crypto legislation. ,” he said.

Solana ETF Approval Is Sure, No Matter Who Wins

Cryptocurrencies have indeed become a prominent topic in the race for the White House. The Biden administration has a totally different view on digital asset regulation compared to former President Donald Trump, who is a crypto friendly personality.

However , there are still some hurdles to overcome. One of the main problems is that there isn’t a regulated market for trading Solana futures yet.

Sigel attributes this to SEC Chairman Gary Gensler’s influence, describing it as “Gensler Psyop”. He notes that this market condition has existed since Gensler took power.

Despite this challenge, Sigel is confident about Solana ETFs approval even if Biden wins the election. However, he stressed that the outcome also depends on who holds the position of SEC chair.

“If they approve Ethereum-based products to trade (which would cement Ethereum’s status as a commodity), the same principle should apply to Solana.

The SEC should apply a fair and timely approval process here,” he added.

Alex Thorn, Head of Research at Galaxy Digital, provided another perspective on the development.

He analyzed the on-the-spot Solana ETP filings by VanEck and 21Shares. Thorn discussed the recently passed FIT21 Act, which clarifies the regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC).

This legislation could play a crucial role in the future by clarifying whether digital assets should be treated as commodities or securities.

According to Thorn, such clarity could improve the chances of ETF approvals in the future.

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Solana’s native token SOL is currently trading at $133. This price reflects a 8.3% drop in the last 24 hours.

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