Solanas Value Rises 12 Following VanEcks Filing for SOL ETF

Solana’s Rally Surges by 12% Following VanEck SOL ETF Application


By Tanzeel Akhtar
Updated on:
July 2, 2024, 00:34 EDT
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Reading Time: 2 min


Over the past week, Solana (SOL) has witnessed a notable 12% surge, propelled by VanEck’s recent petition for a Solana-based exchange-traded fund (ETF).
VanEck, renowned for its groundbreaking Bitcoin ETF offerings, is now venturing to provide investors with direct exposure to SOL, igniting fresh enthusiasm and substantial price upticks in the asset.
Ryan Lee, the principal analyst at Bitget Research, noted that data indicates a collective upsurge in the SOL ecosystem on June 27, triggered by VanEck’s inaugural Solana ETF proposal. The entire sector saw a surge of almost 9% within 24 hours, accompanied by a 30% increase in the number of traders.
Additionally, the momentum from Solana also spilled over to numerous Solana Memecoins, with notable gains seen in cryptocurrencies like BOME, witnessing a 15% rise alongside an 80% surge in trader activity, and WEN, marking a 15.5% increase with a 25% rise in traders.
Solana ETPs, ETNs Already Active in Europe
Various Solana-based exchange-traded products are already actively traded on European exchanges. CoinShares offers the Coinshares Physical Staked Solana ETN, which monitors the Solana index, along with the 21Shares Solana Staking ETP.
In March, Figment Europe Ltd, in collaboration with Apex Group, listed the “Figment Solana Plus Staking Rewards” ETP, set to trade under the symbol “SOLF.”
SOL Positioned as a Major Player in the Crypto Sphere
According to Bitget analyst Lee, SOL could potentially emerge as the third significant cryptocurrency post-BTC and ETH if the proposed ETF materializes, leveraging its recent growth trajectory.
Lee highlighted, “The DeFi ecosystem of Solana has witnessed rapid expansion, with the total value locked soaring from around $1.3 billion at the beginning of 2024 to approximately $4.5 billion presently, a remarkable surge of about 346%.”
Bitget Research attributes this growth to the focused launch of various Solana ecosystem projects, including JITO, Jupiter, Kamino, Marginfi, and Drift. Lee added, “These projects have significantly enriched the Solana ecosystem, introducing more DeFi functionalities to the Solana blockchain.”
Understanding Solana
Solana functions as a blockchain platform tailored for decentralized applications (dApps) and cryptocurrency transactions. Renowned for its rapid processing speed and scalability, Solana can handle over 65,000 transactions per second at minimal fees, courtesy of its unique Proof of History (PoH) consensus mechanism complemented by Proof of Stake (PoS) protocol. Positioned as a robust competitor to Ethereum, Solana has attracted developers and projects to its vibrant ecosystem.
The potential introduction of a Solana-based ETF in the U.S. has surged investor confidence, indicating a broader acceptance of Solana within traditional financial circles. If greenlit, VanEck’s proposed ETF would enable investors to access SOL exposure without directly purchasing the cryptocurrency, potentially attracting increased institutional interest and adoption.
This recent progression underscores Solana’s ascension in the crypto landscape.