VanEck’s Matthew Sigel Sees Path for Solana Spot ETF Amid Regulatory Challenges"

Matthew Sigel, head of research at VanEck, recently shared insights on cryptocurrency regulation in the US, following VanEck’s move to file for a Solana spot ETF. Spot ETFs have emerged as a crucial tool for institutional investors seeking exposure to crypto assets amid the US’s complex regulatory landscape.

Sigel indicated that the approval of a Solana ETF seems feasible, especially given the favorable progress of Ethereum ETF applications as noted by SEC Chair Gary Gensler. Sigel argued that if Ethereum’s ETF application is approved, it would substantiate Ethereum’s status as a commodity, a precedent likely to extend to Solana. “If these products [ETH ETFs] are allowed to trade, then that confirms that Ethereum is a commodity. And the same thing will be true of Solana as well,” Sigel stated in a discussion with Sonali Basak and Tim Stenovec on Bloomberg Crypto.

He pointed out that Solana’s lack of a Futures Market, unlike Bitcoin and Ethereum, shouldn’t hinder its ETF approval. Sigel reiterated that the SEC could use the 19b4 forms, which were instrumental in approving Bitcoin spot ETFs in January, rather than focusing solely on the existence of a regulated futures market for Solana, mirroring the approach taken with Ethereum ETF applications.

Furthermore, Sigel emphasized that numerous other ETFs exist despite their limited relevance, such as those based on shipping, uranium, and power. He urged for regulatory changes in Washington, stressing that the SEC’s stance, led by Gensler, is pivotal. “It all depends on the SEC chair. If Gensler is still the SEC chair, it is not going to happen unless he has been given instructions to treat this asset class differently,” Sigel commented. This view aligns with the broader skepticism among analysts from Galaxy Digital and Bloomberg, who continue to highlight regulatory and political hurdles. Eric Balchunas from Bloomberg pointed out, “Yes, the odds of a SOL ETF being approved in the next 12 months are tied at the hip to the odds of a change in POTUS and safe to say the chances of both are higher today than they were yesterday. Although we are not giving any exact number on this yet. Way too early,” Balchunas noted.

Geoffrey Kendrick, head of FX and digital assets research at Standard Chartered Bank, also echoed this sentiment regarding Bitcoin, predicting that BTC could reach $100,000 by November’s US presidential election. However, Kendrick’s prediction depends on President Joe Biden staying in the race past Ohio’s candidate registration deadline on August 4. If Biden remains the Democratic nominee by then, he could continue in the race until November.