VanEck has filed the first U.S. exchange-traded fund (ETF) focused on Solana. The new fund, named the VanEck Solana Trust, aims to offer investors exposure to Solana (SOL), a blockchain known for its high throughput and low transaction costs.

This move comes after the Securities and Exchange Commission (SEC) showed a favorable stance towards spot Bitcoin and Ethereum ETFs. Worth noting,just six days ago, 3iQ filed for a similar product in Canada.

Matthew Sigel, head of digital assets research at VanEck, highlighted Solana's decentralized nature, utility, and economic feasibility as key reasons for this new ETF.

The Appeal of Solana

Solana's blockchain is recognized for its proof-of-history and proof-of-stake mechanisms, making it an attractive option for both institutional and retail investors. The network's combination of scalability, speed, and low costs positions it as a strong competitor to Ethereum. 

Sigel emphasized that SOL, like Bitcoin and Ether, functions as a digital commodity. It is used to pay for transaction fees and computational services on the blockchain, and can be traded on digital asset platforms or used in peer-to-peer transactions.

The filing for the Solana ETF has already had a positive impact on the market. The SOL token saw a nearly 8% gain within a few hours of the announcement, according to CoinMarketCap.

Future of Crypto ETFs

The approval of Bitcoin ETFs in January marked a significant milestone for the crypto industry. Analysts believe that the introduction of Ethereum ETFs could attract $5 billion in net inflows within the first five months. 

Although discussions about a Solana ETF were initially expected to start in 2025, VanEck's proactive approach indicates that the market may be ready for this new investment vehicle sooner than anticipated. Other cryptocurrencies, such as Ripple's XRP, are also being considered for future ETFs.