VanEck Turns To Solana To Fulfill Crypto ETF Dreams

Mutual funds management company, VanEck has decided to capitalize on the “Solana Summer” craze by seeking to offer Solana exchange-traded fund (ETF) in Germany. 

First Bitcoin, Then Ethereum, And Now Solana

The company has long since wanted to enter the crypto space. Previously it had made several unsuccessful attempts to launch Bitcoin or Ethereum ETFs and currently offers a Bitcoin Tracker Fund to provide direct crypto exposure to US investors and qualified offshore clients.

VanEck’s Head of Digital Assets Research, Matthew Sigel, had spoken last month about considering Layer 1 smart contract platforms other than Ethereum. He had also explicitly pointed out Solana because of its lower transaction prices and faster throughput. 

“The idea that you could get 50,000 transactions per second, which would rival Nasdaq, opens up the potential to just securitize any number of existing assets, tokenize them and trade them in parallel using the Solana network.”

Keep Coming Back To Bitcoin

The investment firm first attempted to move into crypto back in 2017, when it filed for a Bitcoin ETF in the US. However, after intense pushback from the Securities and Exchanges Commission (SEC), VanEck withdrew its application. 

Last week, the company decided to give it a go one more time and filed a prospectus with the SEC for a BTC strategy ETF with exposure to bitcoin futures and other investment vehicles.

With the Chairman of the SEC, Gary Gensler, hinting at approving an ETF at some point soon, the agency has recently seen a rush of ETF product filings. 

The firm’s Director of Digital Assets Strategy, Gabor Gurbacs’s comments indicate a probable positive outcome for the team. 

"VanEck was first to file for a bitcoin futures ETF in 2017. We are committed to bring to market a bitcoin ETF. Futures markets have matured significantly since 2017."

However, the SEC is yet to approve any of the multiple ETF applications pending on its desk. 

The Ethereum Effort

The SEC has been playing hardball for a while now, causing many ETF applicators to drop out of the process. And it is not just for Bitcoin ETFs. In August, VanEck itself had filed the paperwork for an Ethereum futures ETF. However, the application was withdrawn just a few days later. Although VanEck has maintained complete radio silence over their decision to withdraw, it seems clear that the SEC is still not in the mood to entertain ETF requests. As a result, the US crypto community is losing hope of having a US-listed ETF. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Publication date: 
09/20/2021 - 13:30
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