VanEck: Solana ETFs Would Launch Soon as More Regulatory Clarity Comes to the US Crypto Market

Matthew Sigel, head of Digital Assets at VanEck, believes Solana ETFs will launch as soon as the US crypto market gains better regulatory clarity.

While BlackRock executives remain pessimistic about more crypto ETFs, Sigel is optimistic that ongoing regulatory developments in the US will pave the way for more of these products.

Sigel's statement comes amid heightened debate about the possibility of a Solana ETF approval from the US SEC.Moreover, SEC Commissioner Hester Pierce believes a Solana ETF will need more convincing to get the agency's approval.

Solana ETFs Could Launch Sooner Than Expected

During an interview with The Wolf of All Streets podcast host Scott Melker, VanEck's Matter Sigel said Solana ETFs will soon hit Wall Street.

The debate about the possibility of ETFs for top altcoins, particularly Solana, has been ongoing since Bitcoin and Ether ETFs launched. While some believe the ETFs for the two flagship cryptocurrencies could pave the way for altcoins, others think otherwise.

Despite their Bitcoin and Ethereum ETFs performing remarkably, BlackRock's executives remain pessimistic about the SEC approving more crypto ETFs.

Notably, high demand for SOL-based ETFs could spur these asset managers to apply for SEC approval to list one.

BlackRock's Chief Investment Officer Samara Cohen recently said there's no market demand for Solana or other altcoin ETFs. However, asset manager VanEck shares a different perspective.

BlackRock CIO of ETF and Index Investments Samara Cohen discusses the iShares Ethereum Trust ETF (ETHA) and expects we'll see allocation of crypto ETFs in model portfolios by the end of this year and into 2025 https://t.co/5UOLwIRWHL pic.twitter.com/rYqpym7Wqg

- Bloomberg Crypto (@crypto) July 29, 2024

Disputing the widespread skeptical views, VanEck's Head of Digital Assets, Sigel, said during his interview:

We disagree with the notion that Bitcoin and Ethereum will be the only ETFs. The market in Europe already boasts a variety of crypto ETPs, including single coin and basket options, and we aim to lead this innovation in the US as well."

Sigel is optimistic about upcoming regulatory changes in the United States crypto market. He believes this change will allow for the introduction of more crypto-based ETFs.

Moreover, the SEC recently retracted its claims in the Binance lawsuit that ten altcoins, including Solana, are securities. This shift in stance reignites optimism among market participants and industry players like VanEck.

However, Hester Pierce, a pro-crypto SEC commissioner, said it could require more convincing to get the SEC to approve crypto ETFs in the US market.

Although Sigel believes diversification is necessary in the crypto ETF market, he doubts a multi-basket approach will work in the US.

SOL ETF to Hit the Market in 2024

Two US-based asset managers, 21Shares and VanEck, have applied for the SEC approval to issue a Solana ETF. Despite widespread skepticism among top industry players and experts, VanEck seems intent on pushing for the ETF.

However, given the upcoming US elections in November, launching a SOL ETF this year seems far-fetched.

Moreover, other hurdles obscure the possibility of a SOL ETF debut in the US crypto market this year. One is the absence of a regulated futures market for Solana in the US. However, the CBOE has requested a list of Solana-based ETFs.

Further, despite being among the top 10 cryptocurrencies, Solana only makes up 3.3% of the overall crypto market capitalization. This minute market share could make the US SEC skeptical about Solana's ability to satisfy necessary price manipulation and liquidity requirements.

The post VanEck: Solana ETFs Would Launch Soon as More Regulatory Clarity Comes to the US Crypto Market appeared first on The Tech Report.