It is now the legislative open season for digital assets in the United States – and not only because the incoming president released a Solana Memecoin on the threshold of his inauguration. Now it is suggested and other Memecoins as assets for a new series of cryptocurrency -Tfs. In just over a month, the American crypto market went from an absurd amount of obstacle to an absurd amount, yes, absurdity.
While I can hardly imagine a financial advisor who tells me, “You are a little under allocated in $ Trump coin,” is the reality that these new currencies can be valid assets for a ETF. Another view is that they are completely useless.
A more generous view is that they are a form of creative expression. They are not a symphony of Mozart, determined, but these coins – $ Bonk, $ Pengu – clearly have some cultural value. I can see why some investors, retail and otherwise, would be interested in an ETF of this kind.
This brings us to Solana, which is now essentially the 3rd largest asset in terms of market capital and by far the largest in terms of networking. Bitcoin, although originally imagined as a kind of digital cash, has emerged as a digital value of value. And Solana has taken the mantle of a blockchain -smart contract with her unique proof of history that has the potential to operate all kinds of blockchain -based applications. It’s time for a Solana Etf.
Read more: ‘It’s so early’: How Solana competes with Ethereum for Institutional Interest
The basic work is there. It took 10 long years and a trial for Bitcoin Etf to be approved. After several challenges, an Ethereum ETF was also approved – with a star. Each issuer who included the delivery of “efforts” rewards in their applications had to beat it. Thus, SEC effectively said that the issuers (and investors) could not participate in the management of these blockchains, but could invest in them.
As a result, any investor who has bought an Ethereum ETF since May has missed the opportunity to earn dividends on their asset – dividends that come directly from supporting the security of the Blockchain itself. If these investors instead of ETF shares bought the same amount of Ethereum and stabbed it (for example, with coinbase), they could earn, e.g. 2-4% APY, in return for letting their ETH be used to keep blockchain safe. Whatever your policy, and whether you feel about Cryptocurrencies, the truth is that this puts US investors into a disadvantage. European investors already have ETPs for other currencies, and they also have access to insert rewards through them as well.
And yet, in the US, we are still waiting for a Solana Etf of all kinds. And that will certainly not include efforts to begin with when the issuers learned from the Ethereum case of not including it. In my opinion, Europe’s approval of stacking ETPs should set the precedence of a Stakeing ETF in the United States.
As for why this stacking ETF should be for Solana, yes – the fact that the president’s memecoin was released on Solana is no accident. It is a popular blockchain that can handle billions in transaction volume, even when unexpected. Its scalability and power will inevitably be used for assets in the real world of tradfi and any other number of cases in the real world. Not giving investors access to invest in this technology through their traditional financial accounts is as if we are limited investors to invest in Amazon or Google during their original offer. This is why a Solana ETF must be quickly approved: to give the broad retail and institutional investors access to the next largest asset after Bitcoin and Ethereum.
In short: Solana is too late for a ETF of its own, and I urge the new management at SEC to approve the applications they have inherited from them, including Grayscale, Vaneck, 21Shares, Canary Capital and Bitwise – and even encourage them to reintegrate Stack for their suggestions. (Canary’s application has reached another phase of SEC review, indicating it could be approved with time.)
It’s still early, so we don’t yet see the long -term effects of this administration’s approach to cryptocurrency. But it is possible that it can push through a new, better frame for crypto-active products. It would be worthy of hype.
