- Bloomberg’s ETF expert has set a date for when the ETH ETF will likely trade for the first time.
- Crypto industry leaders discuss the possibility of a Solana ETF launching in due course.
- The Chicago Board Options Exchange has received an application from VanEck & 21Shares.
Discussions about a potential Solana ETF have begun. Founded in 2018 as the ‘Ethereum Killer’ and arguably the fastest Layer 1 chain, 2021 has seen its heyday, hitting an all-time high of $259.96 on November 6, 2021.
Key Regulatory Barriers Targeting Solana ETFs
21Shares co-founder Ophelia Snyder and VanEck’s Matthew Siegel are both very optimistic about the launch of a Solana-based ETF, but several regulatory setbacks could prevent a SOL ETF from launching in a timely manner.
For example, SEC Chairman Gary Gensler has called for a regulated futures market for any alternative currency considered for ETF use in the United States.
Eric Balchunas, Bloomberg’s chief ETF analyst, expects an Ethereum ETF to start trading on July 23, 2024, but a Solana ETF is unlikely to launch this year. Matthew Siegel, VanEck’s head of digital asset research, said the likelihood of a Solana ETF largely depends on the changing regulatory environment.
Siegel went so far as to say that the futures market requirement for the Solana ETF was nothing more than a delaying tactic. “He’s been in charge since he came into office, and there are a lot of ETFs that are trading in a futures market that has nothing to do with price formation,” Siegel explained in a Bloomberg interview, lashing out at Gensler.
On the other side
- According to Santiment, despite the hype surrounding a possible Solana ETF, social trading volume on Solana has dropped significantly as Ethereum has taken the spotlight.
Why this matters
Exchange-traded fund (ETF) products increase accessibility to cryptocurrencies by allowing traditional investors to purchase digital assets in a safe and regulated environment.
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