VanEck, a leader in cryptocurrency investment, has applied to the US Securities and Exchange Commission (SEC) for the launch of a Solana exchange-traded fund (ETF). VanEck’s head of digital assets research, Matthew Sigel, stated that the ETF will take advantage of Solana’s decentralized structure and high utility.
The proposed ETF, named the VanEck Solana Trust, aims to track Solana’s price performance excluding operational costs. If approved, it will be listed on the Cboe BZX Exchange, marking the first ETF application in the United States.
Sigel compared SOL to commodities like Bitcoin and Ether, highlighting that SOL is used for transaction fees and computational services on the Solana blockchain, much like Ether is used on Ethereum. This supports the classification of SOL as a tradable digital commodity.
The VanEck Solana Trust will determine its daily share value using the MarketVector Solana Benchmark Rate index, which is based on prices from the top five SOL trading platforms identified by the CCData Centralized Exchange Benchmark report. This will ensure an accurate valuation for investors.
VanEck’s filing comes after the SEC approved spot Ether ETFs in May 2024, classifying Ethereum as a commodity. This likely influenced VanEck’s decision to pursue a Solana ETF.
Solana Eyes Gains After VanEck Filing
Following VanEck’s filing, SOL surged 7.68% to $148.17. Breaking $132 on June 24, SOL now eyes further gains if it stays above $132.34. Today, SOL surpassed its 50-day EMA and is nearing the 100-day EMA at $150.53. A breach could see SOL test $173, with potential targets at $187 or $201.
If SOL fails to maintain above $132.34, it could test support at $117.67 and potentially drop to $99. The Relative Strength Index (RSI) is recovering from oversold conditions, and the Awesome Oscillator (AO) is nearing its mean level. These indicators suggest the recovery rally could gain more momentum.
However, SOL’s bullish outlook depends on maintaining its support levels. A daily close below $122 could invalidate the bullish thesis, potentially leading to a retest support level at $117. Investors should watch these key levels to gauge SOL’s future price direction.
VanEck’s Solana ETF filing is a significant step in cryptocurrency investment, showing increased confidence in SOL’s utility and market potential. The market will closely monitor the SEC’s filing review, which could influence the future of cryptocurrency ETFs in the United States.
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