The asset management firm has filed the first-ever Solana (SOL) ETF in the US, leading the way in introducing this financial product to provide institutional investors with exposure to Solana.
Matthew Siegel is optimistic about the approval of a Solana ETF.
Siegel suggested that the language used in Ethereum ETF 19b4 forms, which classified Ethereum as a commodity based on its decentralization traits, could similarly apply to Solana. He believes securing surveillance sharing agreements from exchanges, as done for Bitcoin and Ethereum spot ETFs, could aid in securing approval for a SOL ETF.
Additionally, Siegel highlighted that some commodity-based ETFs exist without a Futures Market, presenting a potential pathway for a Solana ETF. Unlike Bitcoin (BTC) and Ethereum (ETH), which have their Futures Market on the Chicago Mercantile Exchange (CME), SOL currently lacks this market infrastructure.
On Wednesday, Matthew Siegel’s interview preceded VanEck’s submission of the first Solana (SOL) ETF filing in the US on Thursday. Headquartered in New York, the asset manager filed its S-1 registration form with the US Securities and Exchange Commission (SEC).
VanEck’s bold move to pioneer the Solana ETF filing follows its first-mover strategy, previously leading with the Ethereum spot ETF filing in 2021. Despite taking nearly three years for regulatory engagement, VanEck also submitted an ETH ETF application in September 2023, joining a recent surge of filings alongside BlackRock and Fidelity, among others, awaiting potential ETH ETF launches anticipated for early July. VanEck has committed to fee waivers until 2025 pre-approval.
Additionally, the Thursday filing follows 31Q’s Canadian launch application just six days earlier, potentially introducing the first Solana exchange-traded product (ETP) in North America.
The Solana ETF sparks a debate over SOL vs. ETH.
Siegel defended VanEck’s decision to move forward with the Solana ETF filing, dismissing criticism that they should have waited for the ETH ETF launch first.
“I didn’t realize that engaging in competitive business activities equated to unnecessary rivalry,” the VanEck researcher commented.
Investors have raised concerns about comparing Ethereum’s decentralization with that of Solana, pointing out that the Solana Foundation and related entities hold 20% of the SOL supply, significantly more than the Ethereum Foundation’s 0.2% stake in ETH.
Steve Dakh, CTO and founding member of Ethereum, remarked, “With the Solana Foundation and related entities still owning 20% of the SOL supply, I wouldn’t consider it decentralized.”
The debate between Solana and Ethereum has been ongoing, touching on factors like efficiency, development, and scalability. In December, Solana co-founder Anatoly Yakovenko dismissed the notion of Solana being an Ethereum competitor, stating that both technologies can coexist with overlapping features and competition.
“Let’s not revive the ‘ETH killer’ narrative from past cycles. It’s outdated. Pareto-efficient technologies can share features and compete, and that’s perfectly fine,” Yakovenko wrote. “I don’t foresee a scenario where Solana thrives at the expense of ETH. As a techno-optimist, I believe that Danksharding will eventually scale to accommodate all of Solana’s data needs.”
