VanEck, a pioneer in digital asset investments, has taken a bold step by filing for the first Solana ETF in the United States, as per a news report on Watcher Guru. This move comes from their head of digital asset research, Matthew Sigel, who announced on X (formerly Twitter) that the application was submitted to the U.S. Securities and Exchange Commission (SEC) on June 27, 2024.
Quick Take
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VanEck has filed for the first Solana ETF in the United States, submitted to the SEC on June 27, 2024.
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Following the announcement of the ETF filing, Solana's native token, SOL, saw a significant price increase, rising 12% from $135 to $151 on June 27.
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Solana has experienced substantial growth, with its total value locked (TVL) increasing by 120% to $4.48 billion in 2024.
Solana as a Commodity
Sigel explained that VanEck views Solana's native token, SOL, as a commodity, similar to Bitcoin and Ether. SOL is used for transaction fees and computational services on the Solana blockchain. It can be traded on digital asset platforms or used in peer-to-peer transactions, much like Ether on the Ethereum network.
"The Solana blockchain’s unique combination of scalability, speed, and low costs may offer a better user experience for many use cases," Sigel, VanEck’s head of digital asset research, added.
This perspective underscores the potential of Solana to revolutionize the blockchain industry, particularly in handling thousands of transactions per second with minimal fees.
Read more: Solana Fund: 3iQ Files for North America’s First Solana ETF on the Horizon
VanEck's Ambitious Plans
The proposed VanEck Solana Trust aims to reflect the price performance of Solana, excluding operational expenses. The trust will value its shares daily using the MarketVector Solana Benchmark Rate index, calculated based on prices from top trading platforms.
VanEck's move comes on the heels of the SEC's approval of spot Ether ETFs in May 2024. This approval marked a significant shift in the regulatory landscape, classifying Ether as a commodity rather than a security. Following this trend, VanEck's Solana ETF could pave the way for further crypto-based investment products.
Read more: Spot Ethereum ETFs by July? SEC Chair Gensler Confirms Progress on Approval
Solana Price Gains 12% From Institutional Investors, Airdrop Campaigns, Rising TVL
SOL/USDT price chart | Source: KuCoin
The announcement of the Solana ETF filing has already had a positive impact on SOL's market performance. Data from Cointelegraph Markets Pro and TradingView shows that SOL rose sharply from a low of $135, climbing as much as 12% to an intraday high of $151 on June 27. The layer 1 token jumped 8.5% in just two hours following the news.
VanEck's pioneering move has sparked significant interest among institutional investors, similar to the surge seen when spot Bitcoin ETFs debuted. The approval of a spot Solana ETF is expected to further boost SOL’s price, potentially mirroring the positive impact seen with Bitcoin and Ether ETFs.
Solana's Airdrop Momentum
Solana’s price has had an impressive run over the last year, rallying more than 780% over the last 12 months and 45% year-to-date. Much of these gains can be attributed to successful airdrops, leading to the emergence of popular Solana-based tokens such as Jupiter (JUP), Dogwifhat (WIF), Bonk (BONK), and Book of Meme (BOME).
Adding to this momentum, Solana-based decentralized exchange (DEX) Zeta Markets has launched its native token, ZEX, and opened airdrop claims. The airdrop is designed to reward early users and encourage long-term participation in the protocol. Eligible users have 90 days to claim their airdrop allocations, with 2% of the token supply (20 million ZEX) allocated for staking during the Genesis Epoch.
Read more: Zeta Airdrop Starts June 27: Here’s How to Claim ZEX Tokens
Solana TVL Up By 120% in 2024
Solana DeFi TVL | Source: DefiLlama
The flurry of airdrops and increased activity within the Solana ecosystem has significantly boosted the total value locked (TVL) on Solana. In 2024, TVL increased by 120% to $4.43 billion, indicating a strong engagement from users and developers. This rise in TVL enhances investor confidence by showcasing the network’s robustness and growing adoption, translating into higher buying interest and propelling the price upward.
SOL Technical Analysis: Path to $200?
SOL/USD price chart | Source: Cointelegraph
SOL’s price action during the daily timeframe indicates a V-shaped recovery pattern. The 20-day exponential moving average (EMA) at $143.5 is acting as immediate support. The relative strength index (RSI) is rising towards the 70 mark, showing buyers’ dominance in the market. The bulls now focus on the 100-day EMA at $148.5 and, later, the 50-day EMA at $150.5. The next barrier lies at the neckline of the prevailing chart pattern at $176.
A daily candlestick close above this level would confirm the continuation of the uptrend. The next logical move would be to the March 18 range high at $209, bringing the total gains to 42%.
On the downside, failure to hold above the 20-day EMA at $143 would signal the inability of the buyers to sustain the uptrend. If this happens, SOL could drop to the pattern’s low at $126, invalidating the bullish outlook.
Conclusion
VanEck's filing for a Solana ETF marks a significant milestone in the evolving relationship between traditional finance and the crypto world. With the potential for significant market impacts and the possibility of political shifts influencing regulatory decisions, the future of Solana and other crypto assets in ETF form looks promising yet uncertain.
Solana's strong price performance, driven by institutional interest and strategic airdrops, positions it well for future growth. As the regulatory environment adapts, VanEck's proactive approach could pay off, making SOL one of the next big names in crypto ETFs.
