VanEck is still hopeful of getting its Solana ETF approved. This is despite them having withdrawn the 19b-4 filing from the CBOE website recently. The asset management firm remains convinced that Solana should be classified as a commodity.
A commodity, pretty much like Bitcoin and Ethereum as the regulatory pressure increases. Nevertheless, this decision demonstrates that VanEck is optimistic about Solana’s future as one of the major digital assets.
VanEck’s Continued Commitment to Solana ETF
Despite pulling the 19b-4 filing, CBOE, VanEck is still very much determined to go ahead with its Solana ETF plans. This filing is used to seek approval from the U.S. Securities and Exchange Commission (SEC) to trade new ETFs. However, VanEck stated that the withdrawal does not mean that the firm has stopped the process of bringing the Solana ETF to market.
The firm’s head of digital assets research, Matthew Sigel, said that the S-1 filing, which is managed by the issuer, is still effective and important to their approach.
According to VanEck, Solana is a commodity just like Bitcoin and Ethereum, strengthening the firm’s support for the ETF. This is a concept based on developing legal analyses which hold that some of the crypto-assets that were classified as securities in primary markets became more similar to commodities in secondary markets.
Nevertheless, VanEck continues to engage with exchange partners and regulators in an effort to move the Solana ETF forward even amidst the current state of flux in the regulatory landscape.
Regulatory Concerns and Market Reactions
The decision to delist the 19b-4 filing has created more questions on the status of Solana classification. The SEC’s focus on whether Solana is a security has affected the approval process of the ETF and created ambiguity in the market. However, VanEck has not changed its stance, as they keep pushing for Solana’s commodity classification.
Some market experts, including the ETF advisor Nate Geraci, have also questioned the possibility of Solana ETFs being approved in the current U. S. administration. However, VanEck’s certainty in Solana’s decentralization advancement and its ecosystem enhances their proposition for the ETF.
Despite the regulatory challenges, Solana’s network has become more decentralized as there has been a decrease in the supply concentration among the top holders and an increase in the number of validators.
Implications of Solana’s Market Activity
Despite changes that have occurred and impacted its investment status, Solana’s market standing remains a topic of interest. While there are constraints on Solana, the price of the token remained strong, climbing close to 2%. At press time, the SOL price was exchanging hands at $146.53. This price action suggests that the investor remains bullish on the asset even though the situation surrounding the ETF remains ambiguous.
Source: CoinMarketCap
Accompanying the bull rally, SOL’s market capitalization and 24-hour trading volume surged by 2.73% and 13.32%, respectively, to $68,346,660,977 and $2,320,453,287.
However, Solana has also witnessed massive outflows, with $39 million being dumped from the asset in the past week. These outflows, which the firm related to reduced transactional activity in certain areas, stand in contrast to the relatively slight inflows into other digital assets.
