Weeks from potential approval: VanEck's Solana ETF digest in updated S-1 filing
New and Exciting Developments in the Solana ETF Universe
The Solana universe is abuzz with excitement as significant advancements are being made towards the approval of Solana ETFs this week. On Friday, big- name investment firms like Franklin Templeton, Galaxy Digital, VanEck, and even Fidelity, submitted amended S-1 forms to list spot Solana ETFs.
Analysts see this move as a strong indication that the U.S. Securities and Exchange Commission (SEC) is gearing up to approve these innovative crypto investment products.
The S-1 form is crucial for obtaining SEC approval for a public ETF. Notably, Grayscale revealed a 2.5% fee for its proposed Solana fund in its amended S-1, and Fidelity's submission marks their first-ever S-1 submission for a spot Solana ETF.
These filings come after rumors that the SEC had asked issuers to revise their S-1s, particularly focusing on in-kind redemptions and staking mechanisms.
Moreover, VanEck has introduced staking options, a move that has been the subject of intense lobbying by crypto interest groups to allow staking-based ETFs, such as for Ethereum and Solana, which would provide extra yield to investors.
While the SEC has already approved spot Bitcoin and Ethereum ETFs, it has been hesitant about ETFs that track other cryptocurrencies like Avalanche, Dogecoin, and Hedera. Decisions on these applications have been delayed, and the SEC has sought more public feedback.
The positive outlook is further strengthened by a potentially more crypto-friendly SEC leadership, with Solana futures already being listed on CME, a move often considered a positive sign for ETF approval.
With pressures from VanEck and 21Shares on the SEC to follow the "first-to-file" method for making decisions, the race to secure the first Solana ETF approval has become more competitive.
Insights: The updated S-1 filings include detailed language regarding staking features, offering investors both price exposure and potential income-generating rewards via staking. SEC approval is widely expected, with odds estimated at around 90%, and prediction markets placing the likelihood of approval by the end of 2025 at over 91%. [Read More: Solana, Cardano, XRP ETFs Approval Timeline: Filings, Latest Updates]
- Analysts are eyeing a potential approval of Solana ETFs, as investment firms like Franklin Templeton, Galaxy Digital, VanEck, and Fidelity have submitted amended S-1 forms to list spot Solana ETFs.
- Alongside Solana, prominent names in the crypto domain like Ethereum and Cardano may benefit from the wave of ETF approval, considering VanEck's proposal for staking options that could provide extra yield to investors.
- The financial sector is closely watching the regulatory landscape when it comes to cryptocurrencies like Dogecoin and Avalanche, as the SEC has showcased hesitancy in approving ETFs that track these assets, despite approving spot Bitcoin and Ethereum ETFs.
- The listings of Solana futures on CME and the pressure from VanEck and 21Shares to implement the "first-to-file" method highlight the competitive nature of the race to secure the first Solana ETF approval, as the sector eagerly awaits this technological advancement in finance.
