VanEck has hinted at the possibility of launching a spot Solana ETF. This comes after the successful introduction of spot Ethereum ETFs, which resonated well with investors.
The buzz around Solana was seen at the recent Bitcoin conference, where attendees showed strong enthusiasm for the next potential crypto ETF.
Solana's Market Performance
Recently, Solana has surpassed Binance Coin to become the fourth-largest cryptocurrency by market capitalization. This is a notable achievement as it is the first time in four years that Solana has overtaken Binance Coin. Over the past two weeks, Solana's price has increased by more than 35%, while Binance Coin saw a 10% rise.
In a recent interview on CNBC's Squawk Box, VanEck CEO Jan van Eck expressed skepticism about the near-term approval of a Solana ETF. He suggested that political factors might play a role, indicating that approval might be more likely if the Republican Party wins the upcoming US Presidential election. Van Eck also noted that the launch of VanEck’s Ethereum ETF (ETHV) was smooth but said that investor interest in Ethereum is significantly lower compared to Bitcoin. “I don’t think they’re going to be the same, same kind of hit [as spot bitcoin ETFs]” Van Eck said.
Market Sentiment and Technical Analysis
Market sentiment around Solana is currently very positive. Solana is trading in a bullish zone above key exponential moving averages on the daily technical chart. Indicators like MACD also give a positive outlook, with both the signal line and MACD line in the bullish zone.
As of press time, Solana's price is up by 3.88%, trading at $182, with strong support at $175.
Popular crypto analyst Rekt Capital has pointed out that Solana is holding well above this support and is eyeing its next move to $202. Additionally, Solana's total value locked (TVL) has surged by 15% this month.
VanEck's recent post on social media suggests that there is a strong interest and sufficient liquidity for a Solana ETF, which could facilitate SEC approval.
However, BlackRock's Head of Digital Assets, Robert Mitchnick, voiced opposition to more crypto ETFs, arguing that altcoins other than Ethereum make up less than 5% of the total crypto market cap, questioning the need for additional ETFs.
Investor Interest and Future Outlook
Investor interest in Solana continues to grow, driven by its recent market performance and bullish sentiment. Last week, Solana grew by almost 8.95%, and last month it saw a growth of nearly 34.84%.
Year to date, Solana has given a remarkable return of 81.28%, according to TradingView data. This strong performance shows the potential for a VanEck Solana ETF to attract significant investor interest.
Although the path to approval for a VanEck Solana ETF may seem impossible, current market conditions and investor sentiment are favorable.
If regulatory approvals are met, the VanEck ETF list could soon include Solana.