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Solana Up 12% After VanEck ETF Filing

Solana Up 12% After VanEck ETF Filing

VanEck’s recent filing for a spot Solana exchange-traded fund (ETF) has resulted in a rise of approximately 12% in Solana (SOL) over the past seven days.

VanEck, a pioneering issuer of Bitcoin ETFs, intends to provide investors with direct exposure to SOL, thereby generating significant price gains and renewed interest in the asset.

On June 27, the SOL ecosystem experienced a collective increase, with the entire sector rising by nearly 9% in 24 hours and the number of traders increasing by 30%, according to Ryan Lee, chief analyst at Bitget Research. The first Solana ETF application from VanEck fueled this increase.

Additionally, several Solana Memecoins experienced gains, including BOME, which increased by 15% with an 80% increase in traders, and WEN, which increased by 15.5% with a 25% increase in traders, both triggered by Solana.

Solana ETPs, ETNs Already Trading in Europe

Several Solana exchange-traded instruments are presently trading on exchanges in Europe. A Coinshares Physical Staked Solana ETN is available from CoinShares, which monitors the Solana index. 21Shares Solana Staking ETP.

Figment Europe Ltd, a provider of institutional staking infrastructure, and Apex Group listed the “Figment Solana Plus Staking Rewards” ETP in March. The ETP will trade under the ticker “SOLF.”

SOL May Become Third Major Crypto

Lee, an analyst at Bitget, speculates that SOL may surpass BTC and ETH as the third most significant crypto asset if it is granted an ETF, owing to its recent acceleration.

Lee stated that Solana’s DeFi ecosystem has experienced accelerated growth, with a total TVL that has increased from approximately $1.3 billion at the beginning of 2024 to roughly $4.5 billion, representing a 346% increase.

The concentrated launch of Solana ecosystem initiatives, such as JITO, Jupiter, Kamino, Marginfi, and Drift, is the reason for this growth, according to Bitget Research. “These projects have significantly enhanced the Solana ecosystem by introducing additional DeFi features to the Solana chain,” Lee continues.

What is Solana?

Solana is a blockchain-based platform for decentralized applications (dApps) and crypto-currency transactions.

Due to its Proof of History (PoH) consensus mechanism and Proof of Stake (PoS), Solana is renowned for its scalability and speed, enabling it to execute more than 65,000 transactions per second with minimal fees.

This renders it a formidable competitor to Ethereum, drawing in developers and initiatives to its ecosystem.

The potential for a spot has bolstered investor optimism for Solana ETF in the United States, which implies that Solana is being more widely accepted in traditional financial markets.

VanEck’s ETF would enable investors to acquire exposure to SOL without directly purchasing the cryptocurrency, potentially fostering additional institutional interest and adoption, provided that it is approved.

This most recent development illustrates Solana’s expansion in the cryptocurrency sector.

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