The approval of a Solana exchange-traded fund (ETF) in the United States is still uncertain, but a recent analysis by a VanEck executive suggests that a 2018 fraud case could be the key to unlocking this possibility. Matthew Sigel, Head of Digital Assets Research at VanEck, believes that Solana should be classified as a commodity, similar to Bitcoin and Ethereum, in order to meet US regulatory guidelines for a crypto ETF approval.
Sigel’s argument is based on a 2018 court case involving the fraudulent crypto payments company, My Big Coin, where the Commodity Futures Trading Commission (CFTC) successfully sued the founders for fraudulently promoting their token. The judge’s ruling in this case established that certain digital assets can be classified as commodities in secondary markets, even if they are considered securities in primary markets.
While Sigel remains optimistic about the potential approval of a Solana ETF, not everyone shares his sentiment. ETF analyst Eric Balchunas pointed out that the Chicago Board Options Exchange (Cboe) removed filings for two Solana ETFs, indicating unresolved classification issues. Despite these challenges, VanEck’s S-1 filing for a Solana ETF remains active, keeping the possibility alive.
Although the road to a Solana ETF approval may be fraught with regulatory hurdles, the recent approval of the world’s first spot Solana ETF by the Securities and Exchange Commission (CVM) of Brazil offers a glimmer of hope for the future. As the industry continues to evolve, the fate of a Solana ETF in the US remains uncertain, but the potential for approval still exists.
