Bitcoin, Web3, Ethereum, and Cryptocurrency Key Points:
– VanEck seeks approval for a Solana (SOL) ETF following BTC and ETH ETF approvals.
– Regulatory challenges exist for altcoin ETFs like Solana due to SEC conditions.
– SEC Chair Gary Gensler’s requirements for altcoin ETFs include a regulated futures market, which is lacking for Solana.
Regulatory Hurdles for Solana ETF
VanEck’s analysts acknowledge the need for substantial regulatory changes before the approval of the Solana ETF. The current SEC conditions set by Gary Gensler, including the absence of a regulated futures market for Solana, pose challenges for the approval process. Analyst Matthew Sigel questions the necessity of futures markets for price discovery in ETFs and speculates that this requirement may be a tactic to delay crypto ETF approvals.
Donald Trump’s Influence on Solana ETF
VanEck’s Solana spot ETF proposal is speculated to heavily rely on a potential victory of Donald Trump in the 2024 U.S. presidential election. Trump’s recent positive stance on cryptocurrency, influenced by contributions from crypto businesses, could impact his policies regarding crypto. Additionally, potential shifts in SEC’s approach to crypto under a continued Biden administration or pro-crypto Democrats could affect the ETF’s approval.
