- VanEck leads the charge for a Solana ETF in the US.
- Speculation abounds of a leadership change at the SEC.
- Sigel expects crypto voters to play a significant role.
Exchange Traded Funds (ETFs) in the US have gained significant attention due to their potential to attract institutional investors to crypto. With the recent approval of Ethereum ETFs, investment firm VanEck is pushing for approval for its own Solana ETF. However, any altcoin ETF will likely face significant regulatory hurdles.
The regulatory environment in the US is so problematic that even VanEck’s analysts acknowledge that substantial changes would need to be made before Solana ETF approval. Critically, the approval likely hinges on changes in the Securities and Exchange Commission (SEC), likely after the 2024 election.
VanEck’s Sigel Talks Solana ETF Approval
While Solana is the most likely candidate for the next ETF approval in the US, significant regulatory hurdles stand in its way. In an interview with Bloomberg on Tuesday, July 2, Matthew Sigel, VanEck’s Head of Digital Assets Research, revealed what the firm expects needs to happen before the approval.
Sigel emphasized that the approval of a Solana ETF largely depends on changes within the SEC. He pointed out that the current SEC Chair, Gary Gensler, has imposed stringent conditions on any altcoin ETF. These include a regulated futures market for Solana, which does not currently exist.
Sigel criticized this requirement as unnecessary, citing other ETFs, such as those for shipping and uranium, which do not rely on futures markets for price formation. He suggested this might be an intentional strategy to delay crypto ETF approvals.
“We think that is a Gensler psyop,” Sigel stated. “He has created that condition since taking power. There are a number of ETFs that trade where the futures market is irrelevant to the price formation.”
In any case, Sigel believes any change in the SEC’s stance likely hinges on a change in the SEC leadership, which could happen soon after the 2024 election.
Crypto Voters Could Sway Election: Sigel
Sigel believes the 2024 elections will likely play a key role in the changes in the SEC, no matter the outcome. This is because politicians of both major parties are increasingly considering the power of pro-crypto voters.
Since the start of the campaign, former President Donald Trump has expressed more favorable views towards crypto. This was a reversal from his previous skeptical stance when he even called Bitcoin a “scam” at one point. Moreover, Trump recently took large donations from crypto businesses, which could influence his policies.
On the other hand, Sigel believes that a change in the SEC could even happen if Biden wins. In particular, he pointed out that several Democrats have already endorsed pro-crypto policies despite the party’s traditionally skeptical attitude toward crypto.
On the Flipside
- While the current political environment seems to be tilting more pro-crypto, this could change rapidly for several reasons. For one, climate change concerns are a major issue for Bitcoin mining in the US.
- Several prominent Democrats support crypto, including New York Mayor Eric Adams. Controversially within his own party, he has opposed New York state’s ban on crypto mining.
Why This Matters
Regulations are among the most significant risks the crypto industry faces today, especially in the US. A shift in the regulatory landscape will significantly impact the crypto industry in this key economy.
Read more about expert takes on VanEck’s Solana ETF:
VanEck’s Solana EFT Bets on Trump’s Win: Bloomberg Analyst
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