On June 27, investment manager VanEck filed to list the first US exchange-traded fund (ETF) linked to the spot price of Solana.
The announcement, published on the US Securities and Exchange Commission’s website, states that the VanEck Solana Trust, pending approval, will be an exchange-traded fund that issues common shares of beneficial interest. These shares are expected to be listed on the Cboe BZX Exchange, Inc.
The VanEck Solana Trust’s investment objective is to mirror the performance of the Solana price, deducting the expenses of the Trust’s operations.
In order to achieve its investment objectives, the Trust will be investing in Solana (SOL) tokens. The value of its shares will be calculated daily based on the reported MarketVector Solana Benchmark Rate, using prices from what MarketVector Indexes GmbH considers to be the top five Solana exchanges according to industry standards.
A similar product was recently launched in Canada about six days ago.
First-ever Solana ETF in the US
The filing for the Solana ETF comes shortly after the SEC approved a spot for ether ETFs in the US. This approval resolved a long-standing dispute regarding Ether’s classification. Ultimately, it has been designated as a commodity rather than a security, and the SEC has also ceased its investigation into whether Ether constitutes a security.
Asset managers like VanEck have been encouraged by the SEC’s approval of spot bitcoin and ETH ETFs.
Meanwhile, they are planning to add more cryptocurrencies to their investment portfolio. In January, after several years of legal disputes, the SEC gave the green light to spot bitcoin ETFs. The regulatory body is anticipated to approve Ether ETFs for trading by July 4.
Exchange-traded Funds allow investors to gain exposure to a specific digital asset without directly owning it. This market has caught the attention of major players in traditional finance, such as BlackRock, which manages the largest spot Bitcoin ETF.
VanEck did not disclose the fees it intends to charge for the spot Solana ETF. The asset manager currently offers spot bitcoin and ether ETFs.
Solana price movement
The SOL price responded positively to the announcement, despite most of the other top altcoins trading in the red. Solana is changing hands for just under $150, representing a 7.42% increase since the announcement was made an hour ago. In the last 24 hours, its market cap has grown to reach $69.17 billion, while its trading volume has surged by 23.68%, per Coinmarketcap data.
