The spot Solana ETF: Will US presidential election make or break it?

The spot Solana ETF is the latest hot topic in the crypto industry, and its fate might be tied to the upcoming 2024 U.S. presidential election.

Matthew Sigel, head of research at VanEck, has made it clear that the future of this ETF depends on the election results and whether Gary Gensler remains the chairman of the SEC.

Just last week, VanEck submitted an application to launch a spot Solana ETF in the United States. Hot on their heels, 21Shares did the same.

Sigel spoke to Bloomberg, saying, “There’s a good chance that crypto voters are going to make the difference in this election.” The odds of getting a spot Solana ETF approved, according to him, vary greatly depending on the election’s outcome and Gensler’s position.

Many in the community believe that the ETF’s approval hinges on whether former President Donald Trump wins the upcoming election in November. Sigel pointed out changes in Washington’s regulatory environment, noting:

“We’re already seeing a change in the regulatory environment at the elected official level. Multiple Democrats voting for pro-crypto legislation.”

Pointing to a recent statement by Gensler that “Ethereum spot ETF approval process is going smoothly,” and said “This might be the only time in three years that I’ve agreed with Gary Gensler about something.”

Sigel believes 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.”

“There’s some focus that there’s no regulated futures market for Solana. And that might be holding back the ETF.”

Matthew Sigel

With the slight change in the regulatory environment in Washington, Sigel remains optimistic, stating, “We think these will get approved.” However, he clarified that the outcome isn’t entirely dependent on the presidential election.

On the topic of Ethereum versus Solana ETFs, Sigel emphasized VanEck’s role in providing options to investors. He called for fairness in the ETF approval process, a stance he’s taken 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.”

Reporting by Jai Hamid