Solana ETF Approval Odds Are Better Without Gensler at SEC, Says VanEck

The absence of a regulated Solana futures market is "Gensler Psyop," said Matthew Sigel, VanEck's head of digital assets research.

By Murtuza Merchant

3 min read

VanEck Head of Digital Assets Research Matthew Sigel suggested during an interview yesterday that the odds of its bid to offer spot Solana ETF vary greatly depending on the outcome of the 20204 presidential election and whether Gary Gensler remains chair of the Securities and Exchange Commimssion.

VanEck filed an application to offer U.S. investors a spot Solana ETF just last week, and was quickly followed by 21Shares. Since the filings were submitted, it's been a popular refrain among Solana hopefuls that the ETF's chances will hinge on whether former president Donald Trump wins the U.S. election in November.

"There's a good chance that crypto voters are going to make the difference in this election," Sigel said during in an interview with Bloomberg yesterday.

He pointed to a shifting landscape in Washington, noting, "We're already seeing a change in the regulatory environment at the elected official level. Multiple Democrats voting for pro-crypto legislation."

The potential impact of crypto voters comes amid ongoing debates about the regulatory treatment of various cryptocurrencies.

Sigel expressed agreement with SEC Chair Gary Gensler's recent comment that "Ethereum applications are going smoothly," adding, "This might be the only time in three years that I've agreed with Gary Gensler about something."

Sigel suggested that if Ethereum-based products are allowed to trade, it would confirm Ethereum's status as a commodity.

He extended this logic to Solana, stating, "The same thing will be true of Solana as well." However, Sigel criticized the current regulatory environment, particularly regarding Solana.

"There's some focus that there's no regulated futures market for Solana. And that might be holding back the ETF," he said. "We think that is again Gensler Psyop. He has created that condition since taking power."

Addressing the potential for approval of crypto ETFs, Sigel tied it closely to the political landscape.

"With the slight change in the regulatory environment in Washington, we think these will get approved,” he said.

But Sigel clarified that the outcome isn't entirely dependent on the presidential election.

"I wouldn't say no way," he added. "You know, we could still have a new SEC chair. Even if Biden wins. So it all depends on the SEC chair."

On the topic of Ethereum versus Solana ETFs, Sigel emphasized VanEck's role in providing options to investors. He also called for fairness in the ETF approval process—something he's said before

"It is not too late for the SEC to do the right thing and revert to its traditional first come, first serve process towards approving these ETFs," he said. "And under that framework, you know, VanEck would go first."

Edited by Stacy Elliott.

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