The success of a Solana ETF relies heavily on Trump election outcome, analyst says

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As a researcher with a background in the crypto market and experience following regulatory developments closely, I believe that VanEck’s Solana ETF approval will depend on substantial changes within the Securities and Exchange Commission (SEC) and potentially the outcome of the 2024 U.S. presidency.

As a crypto investor, I’m keeping a close eye on the potential approval of a Solana Exchange-Traded Fund (ETF). However, it’s important to note that this process may heavily depend on any shifts within the Securities and Exchange Commission (SEC). Furthermore, the upcoming presidential election results, specifically with Donald Trump as a possible winner, could potentially influence the SEC’s decision-making process.

As a dedicated researcher focusing on the exciting developments in the crypto space, I’m thrilled to share that VanEck, a well-known financial institution, has announced its intention to apply for an Exchange-Traded Fund (ETF) based on Solana (SOL). This follows the recent success of Bitcoin (BTC) and Ethereum (ETH) spot ETFs.

In the cryptocurrency realm, there’s a widespread belief that numerous regulatory hurdles must be overcome before any altcoin Exchange-Traded Funds (ETFs), apart from Ethereum (ETH) and Bitcoin (BTC), can secure approval. VanEck’s analysts have admitted that significant regulatory adjustments are required before the Solana ETF can obtain the green light.

In a recent conversation with Bloomberg, Matthew Sigel, who leads the Digital Assets Research team at VanEck, shared insights on the challenges preventing the approval of a Solana Exchange-Traded Fund (ETF).

Regulatory hurdles for Solana 

As a crypto investor, I’ve observed that the current SEC Chairman, Gary Gensler, has established rigorous requirements for approving altcoin Exchange-Traded Funds (ETFs). One of these conditions is the availability of a regulated futures market for specific cryptocurrencies, such as Solana. However, at present, there isn’t one in place.

Sigel voiced opposition to this prerequisite, contending that Exchange-Traded Funds (ETFs) based on shipping and uranium aren’t reliant on futures markets for price determination. He proposed a possibility that this condition could be a strategic move aimed at delaying the approval of crypto ETFs.

As a researcher studying the impact of Gensler’s leadership on the Exchange-Traded Fund (ETF) market, I’ve observed that certain conditions have emerged since his tenure began. Specifically, there are several ETFs whose prices no longer depend on the futures market.

Sigel posits that the Securities and Exchange Commission (SEC) might adopt a different position towards cryptocurrencies after the 2024 elections due to shifting political winds. He points out that the views of pro-crypto voters could significantly influence election results, forcing both major parties to pay attention.

Donald Trump

Sigel’s answer, “I can confirm,” can be paraphrased as “I can indeed verify” or “It is true that.” In regard to the VanEck Solana spot ETF proposal and rumors of its heavy reliance on Donald Trump winning the U.S. presidency, Sigel was stating that this is not the case.

Previously, former President Trump held less favorable opinions towards cryptocurrencies. However, following substantial contributions from crypto-related enterprises, Trump has adopted a more optimistic stance on digital currencies. This shift in perspective might impact his future policies regarding the sector.

Furthermore, there’s a possibility that the SEC’s stance on cryptocurrencies may change, regardless of whether President Biden gets re-elected or not. Some Democratic politicians have expressed their backing for crypto-friendly regulations.

The VanEck proposal for a Solana spot ETF hinges on the result of the 2024 election, with the application date falling in March 2025. Already, this proposal has generated considerable buzz, leading to a noticeable increase in Solana’s price and trading activity following its submission.

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2024-07-04 19:24