Cryptocurrency exchange-traded funds continue to dominate in the United States, with VanEck’s latest filing considering the fifth largest digital asset, Solana.
Shortly after the news broke, the native token’s price surged 7% to $150.
Matthew Sigel, Director of Digital Assets Research at the company, emphasized the development of Solana. He noted that the company sees Solana as very similar to Ethereum, as it is an “open-source blockchain software designed to process various applications, including payments, transactions, gaming, and social interaction.”
He added that unlike Ethereum, Solana is a “single global state machine” lacking sharding or a second-layer network.
After a decade-long struggle, the U.S. Securities and Exchange Commission approved a Bitcoin futures ETF in January of this year. However, U.S. regulators are convinced that the underlying asset (BTC) is a commodity.
According to the U.S. Securities and Exchange Commission, just last month, the regulatory agency reluctantly approved an Ethereum ETF, but due to the uncertain position of ETH, the agency continues to delay its launch.
As a result, the status of SOL remains questionable. However, Sigel outlined several reasons why VanEck believes it is a commodity, similar to Ethereum and Bitcoin.
“We believe that the functionality of the native token SOL is similar to other digital commodities such as #Bitcoin and #Ethereum. It is used to pay for transactions and computational services on the blockchain. Like Ether on the Ethereum network, SOL can be traded on digital asset platforms and used for peer-to-peer transactions.”
The price of SOL immediately reacted to this news, surging 7% in a matter of minutes. The asset had fallen to $135 during the market-wide correction, but jumped to $150 after VanEck’s announcement.
SOLUSD Price/Chart 27.06.2024. Source: TradingView.