Solana ETF Prospects as BlackRock and VanEck Take Positions

VanEck Head of Digital Assets Research Mathew Sigel says Solana ETFs (exchange-traded funds) could hit markets sooner than expected. The firm’s position differs from that of BlackRock, which thinks it may be premature to have the financial instrument now.

Solana (SOL) remains a formidable contender in the crypto market. It first challenged Ethereum on scalability and network fee metrics before ascending to the ETFs debate.  

Solana ETFs a Growing Possibility, VanEck‘s Sigel

Sigel advocates for Solana ETFs, using the European market as an example, as it already has multiple ETPs (exchange-traded products) running. Among them are single coin and basket options, with the VanEck researcher saying, “We aim to lead this innovation in the US as well.”

Appearing on The Wolf of All Streets Podcast, Sigel acknowledged current regulatory constraints, the face of which is the current chair of the US Securities and Exchange Commission (SEC), Gary Gensler. He said the environment could change for the better soon, amid prospects of new regulatory changes, potentially opening doors for more diversity in the crypto ETFs market.

As BeInCrypto reported, Sigel recently explained the steps to getting an SOL-based ETF approved, likening Solana to Ether. His stance that an Ethereum ETF paves the way for a SOL counterpart remains unchanged.

Sigel also echoed VanEck’s commitment to crypto and ETFs, highlighting the firm’s CEO Jan Van Eck’s statement during the Bitcoin 2024 Conference. He said that 30% of his [the CEO’s] personal assets are in Bitcoin  

Read more: Solana ETF Explained: What It Is and How It Works

As Sigel anticipates a better regulatory climate, Donald Trump’s expressions during the Bitcoin 2024 Conference in Nashville are worth remembering. He pledged to replace Gensler if elected president, effectively appealing to crypto voters. Regulatory changes would be a given with a new chair at the SEC.

ETF Store president Nate Geraci believes otherwise, joining Sigel hoping for better regulations. Others, like crypto analyst Miles Deutscher, maintain a lukewarm stance. In his opinion, it would be premature to rule out a Solana ETF, considering “how quickly crypto grows and how much traction things get in a short amount of time.”

BlackRock Maintains Skeptims Over SOL ETF

Despite this optimism, BlackRock believes otherwise. The asset manager’s digital asset head, Robert Mitchnick, cited market cap and maturity differences between leading cryptos and smaller assets. Based on these metrics, he said BlackRock has no immediate plans for a Solana ETF. 

“I don’t think we’re going to see a long list of crypto ETFs. If you think of Bitcoin, today it represents about 55% of the market cap. Ethereum is at 18%. The next plausible investible asset is at, like, 3%. It’s just not close to being at that threshold or track record of maturity, liquidity, etc.,” Mitchnick said.

BeInCrypto also reported on BlackRock’s lean toward Bitcoin and Ethereum ETFs rather than the Solana counterpart. While BlackRock currently allocates to crypto, crypto futures, and crypto ETFs, Cohen shot down the prospects of a Solana ETF, citing investability concerns.

“Not in the near term. We look at the investability to see what meets the criteria and bar to be delivered in an ETF. For us right now, between both an investability consideration and what we hear from our clients, Bitcoin and Ethereum meet that bar. I think it will be a while before we see anything else [Solana ETF],” Cohen said in an interview with Bloomberg.   

Meanwhile, SEC Commissioner Hester Pierce believes the regulator needs more convincing before green-lighting a Solana ETF. In an interview, she said there are questions about what SEC commissioners think is security and not.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

Even as talks of Solana ETFs continue, large holders position themselves for rewards. So far, only VanEck and 21Shareshave filed to list the financial instrument. The Chicago Board Options Exchange (CBOE) also bolstered the odds, filing form 19b-4s for Solana ETFs and inviting public commentary.

Despite the hype, BeInCrypto data shows Solana is down 8% to trade for $168.40 as crypto markets flash red.