TL;DR

• SOL jumped damn near 10% in an hour after VanEck applied for a SOL ETF yesterday (it’s probably going to be a drawn out process, but it’s a good first step!)

Full Story

Solana ETF coming soon? Probably not.

But the market doesn’t care!

SOL jumped damn near 10% in an hour after VanEck applied for a SOL ETF yesterday.

Now, here’s why we’re being party poopers re: approval timeline…

The road to approval is probably going to be a long and arduous one, because the process of launching a spot SOL exchange traded fund (ETF) — where the purchase of shares goes towards buying Solana, allowing investors to buy crypto via the stock market — is slow.

We outlined it in depth here, but here’s a quick recap:

1. A SOL futures ETF typically needs to be launched first (allowing investors to bet on the future price of Solana, without actually buying it)

2. The SEC will want to see a year or more of trading take place there, to make sure its free of manipulation.

3. Then the ETF approval can take place.

Now, here’s why that doesn’t matter to traders right now:

A few months back, most people expected the SEC to do their darnedest to ban the sale of SOL in the US (they still have a lawsuit out against Coinbase for selling Solana).

So the idea that VanEck is willing to file for a Solana ETF, and potentially fight the SEC in court to get it approved represents a massive mood change, and gives the market a new narrative to buy in to.

It’s probably going to be a drawn out process, but it’s a good first step!