Solana Jumps 7.66% After VanEck Submits SOL’s First US Spot ETF Application

Asset manager VanEck has filed an S-1 registration form with the U.S. Securities and Exchange Commission (SEC) for a Solana (SOL) exchange-traded fund (ETF). This marks the first such registration for a Solana ETF in the United States, just six days after 3iQ filed for a similar product in Canada.

Solana Classified as a Commodity

In the filing, VanEck asserted that SOL is a commodity because it “functions similarly” to Bitcoin and Ether. The company’s head of digital assets research, Matthew Sigel, stated, “it is utilized to pay for transaction fees and computational services on the blockchain.”

This classification is significant, as the distinction between cryptocurrencies being considered securities or commodities has been an ongoing debate within the regulatory landscape. The SEC previously stated that SOL was a security when it filed charges against crypto exchange Binance last year.

Potential for Solana ETF Approval

The filing follows the SEC’s approval of the first spot Bitcoin (BTC) ETF in January and aligns with the agency’s recent discussions with issuers such as BlackRock, Fidelity, and Ark Invest regarding potential Ether ETFs. Analysts predict that Ether ETFs could attract $5 billion in net inflows within the first five months of approval.

Moreover, given VanEck’s pioneering role in the ETF space—the firm was the first to submit a spot Ether ETF application in 2021—the approval of a Solana ETF could be on the horizon. However, experts suggest serious conversations around a Solana ETF product may not start until 2025.

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Solana’s Market Performance

The filing has already positively impacted the Solana ecosystem, with the SOL token experiencing a nearly 8% 24-hour increase in price. This outpaced the broader crypto market, as measured by the CoinDesk 20 Index (CD20), which saw a 1.8% increase.

^{Source: SOL 24-hour Chart (CMC)}

As of the time of writing, Solana is trading at $148.24, with a 24-hour trading volume of $2,568,486,787. It is up 7.31% in the last 24 hours and currently ranks #5 on CoinMarketCap, with a market cap of $68,539,576,858.