Crypto Analyzer

The Launch of Solana ETF and Its Connection to the 2024 Presidential Election

The recent submission of S-1 applications to the US Securities and Exchange Commission (SEC) by asset managers VanEck and 21Shares for the first spot Solana ETF marks a significant development in the cryptocurrency industry. This move follows the success of the Bitcoin ETF market since its launch in January, with expectations for the Ethereum ETF market to commence trading soon.

Matthew Sigel, VanEck’s Head of Digital Asset Research, has highlighted that the approval and likelihood of trading for the anticipated Solana ETF heavily hinge on the outcome of the upcoming US Presidential election. The different approaches to crypto regulation by the potential candidates and potential changes in SEC leadership play crucial roles in the approval process.

Sigel Advocates for a Fair Approval Process for Solana ETF

In a recent interview, Sigel emphasized the growing influence of crypto voters in the election and the evolving regulatory environment in Washington. With increased bipartisan support for pro-crypto legislation, cryptocurrencies have become a significant topic in the race for the White House, with contrasting approaches from the Biden administration and former President Donald Trump.

Sigel expressed confidence in the approval of Solana ETFs, even in the event of a Biden win, citing the evolving regulatory landscape. He called for a fair and timely approval process by the SEC, criticizing the current situation regarding Solana and urging consistency in treatment with Ethereum-based products.

Galaxy Digital Analysis and Regulatory Outlook

Alex Thorn, Head of Research at Galaxy Digital, analyzed the on-the-spot Solana ETP filings by VanEck and 21Shares, echoing Sigel’s sentiments. Thorn highlighted the significance of the recently passed FIT21 Act, which clarifies regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC), potentially impacting future cryptocurrency regulation.

The approval of Solana ETFs faces regulatory hurdles and uncertainties, with VanEck’s early filing strategy reflecting a strategic approach. The fate of the Solana ETF will depend on the election outcome, potential SEC leadership changes, and ongoing regulatory developments.

As of the latest update, Solana’s native token SOL is trading at $141, reflecting a 5% price drop in the 24-hour timeframe amidst a general market downtrend.

Image source from DALL-E, chart from TradingView.com