VanEck Predicts Solana ETF After Ethereum Approval

VanEck's head of research, Matthew Siegel, believes that the approval of an Ethereum spot ETF will clear the way for a Solana ETF. VanEck has filed for the first Solana (SOL) ETF in the US, sparking renewed interest in the Solana versus Ethereum debate.

Siegel mentioned that the language used in the Ethereum ETF forms, which described Ethereum as a commodity due to its decentralized characteristics, could also be applied to Solana. He believes that similar surveillance sharing agreements for Solana, as seen with Bitcoin and Ethereum spot ETFs, could help get a SOL ETF approved. Siegel also pointed out that some commodity-based ETFs exist without a futures market, suggesting this could support a Solana ETF. Unlike Bitcoin and Ethereum, Solana does not have a futures market on the Chicago Mercantile Exchange (CME).

VanEck's filing for a Solana ETF is the second pioneering move by the asset manager, following its first Ethereum spot ETF filing with the SEC in 2021. Although it took almost three years for the SEC to engage with issuers, VanEck refiled in September 2023 amid a wave of applications from firms like BlackRock and Fidelity. These products are expected to launch in early July, with VanEck waiving fees until 2025 pre-approval.

Six days before VanEck's Solana ETF filing, 31Q filed for a similar product in Canada, potentially bringing the first Solana exchange-traded product (ETP) to North America.

Siegel's announcement reignited the ongoing debate between Solana and Ethereum. He defended VanEck's competitive strategy against criticism that the firm should have waited for the Ethereum ETF to launch first. Some investors question the comparison of Solana's decentralization to Ethereum's, noting that the Solana Foundation and related entities own 20% of the SOL supply, much higher than the 0.2% of ETH owned by the Ethereum Foundation.

Steve Dakh, CTO and founding member of Ethereum, criticized Solana's decentralization, stating, "With the Solana foundation and related entities still owning 20% of the SOL supply, I wouldn’t call it decentralized. In comparison, the Ethereum foundation holds about 0.2% of the ETH supply."

The Solana versus Ethereum debate has been ongoing, focusing on efficiency, development, and scalability. In December, Solana co-founder Anatoly Yakovenko dismissed the idea that Solana aims to replace Ethereum. He argued that both technologies could coexist and compete in overlapping areas. "Don’t bring back last cycle ‘eth killer’ bs. It’s lame. Pareto-efficient technologies can have overlapping features and will compete, but that’s all ok. I don’t see a future where Solana thrives and somehow ETH dies," Yakovenko wrote. He expressed optimism about the potential for both networks to succeed, especially with advancements like Ethereum's Danksharding, which could handle Solana's data needs.

VanEck’s move to file for a Solana ETF has renewed the discussion around Solana and Ethereum. With the potential approval of a Solana ETF following the Ethereum spot ETF, the landscape of cryptocurrency investments could change significantly. Siegel's optimism and VanEck’s strategic actions highlight the evolving dynamics in the crypto market. As regulatory bodies like the SEC review these filings, the future of blockchain technology and its financial instruments continues to unfold, offering new opportunities for institutional investors and intensifying the competition between Solana and Ethereum.