Solana, Not XRP: VanEck Lead Explains Choice For Spot ETF Application

This post was originally published on Bitcoinist

In an interview with Tony Edwards of Thinking Crypto, Matthew Sigel, Head of Digital Assets Research at VanEck, explained the firm’s decision to file for a spot Solana-based Exchange Traded Fund (ETF) rather than one based on XRP. VanEck, a pioneering investment management firm in the US, has chosen to back Solana due to its comparable blockchain characteristics with Ethereum and its decentralized nature.

Solana Is Like Ethereum

Sigel explained the technical and regulatory parallels between Solana and Ethereum that influenced VanEck’s filing strategy. “When we looked at our Ethereum filing and examined the language around decentralization and characteristics of the blockchain, and then refreshed our deep dive on Solana, we concluded that the ETH and SOL assets at this point are fundamentally the same—that no single entity controls more than 20% of the Solana outstanding nor can they halt the chain unilaterally,” Sigel explained.

This decentralization is a crucial aspect, as the SEC has often highlighted the importance of a lack of centralized control in its assessments of crypto assets. By aligning Solana closely with Ethereum in these respects, VanEck aims to position the Solana ETF as a viable commodity, similar to Ethereum, in the eyes of regulators.


Read the rest of this post, which was originally published on Bitcoinist.

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