VanEck and 21Shares have filed an S-1 for a proposed Solana ETF, with the approval of the ETF hinging on the outcome of the US Presidential election and the need for regulatory clarity.
The launch of a Solana ETF is contingent on the election, as different approaches to crypto regulation and potential leadership changes at the SEC could significantly impact the approval process. President Biden’s administration has taken a more cautious and regulatory approach to cryptocurrencies, while former President Trump has shown more support for the industry.
Despite the differences in approach, both administrations have acknowledged the need for greater oversight and consumer protection. However, there are still hurdles to overcome, such as the lack of a regulated market for trading Solana futures. VanEck’s Matthew Sigel remains confident in the approval of Solana ETFs, but emphasized that the outcome also depends on the future SEC chair.
In addition, Alex Thorn of Galaxy Digital discussed the recently passed FIT21 Act, which clarifies the regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC), potentially improving the chances of ETF approvals in the future.
As of the latest market update, Solana’s native token SOL is trading at $133, reflecting an 8.3% drop in the last 24 hours.