VanEck Positive on Solana Spot ETF- How Much Boost Will it be to SOL Prices?

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VanEck predicts Solana will join the spot ETF market in 2024, citing a surge of asset managers submitting filings.

The move could validate Solana’s position and offer easier access for mainstream investors while potentially challenging the dominance of other tokens like Chainlink.

Investment management firm VanEck has made a bold prediction, foreseeing Solana’s entry into the cryptocurrency spot ETF race in 2024. This anticipation is grounded in the belief that a multitude of asset managers will be submitting filings, setting the stage for Solana’s emergence in this competitive arena.

According to analysts Matthew Sigel and Patrick Bush, as outlined in a recent report, Solana is poised to ascend the ranks, potentially becoming one of the top three blockchains by market capitalization, total value locked (TVL), and active users within the next two years.

VanEck’s confidence in Solana’s future prospects is not newfound. In 2021, the firm launched a Solana exchange-traded note (ETN) on the German stock exchange Deutsche Börse, signaling its long-term conviction in the platform’s potential. Should Solana indeed enter the spot ETF market as predicted, it could offer mainstream investors easier access to SOL and other tokens within the Solana ecosystem, thereby further legitimizing the platform.

The burgeoning interest in crypto ETFs is not limited to Solana alone. A slew of asset managers, including industry heavyweights like BlackRock, Fidelity, and HashDex, have been seeking regulatory approval to introduce Bitcoin and Ethereum spot ETFs. The approval of these ETFs could potentially pave the way for the inclusion of newer tokens such as Solana, broadening the investment landscape in the crypto sphere.

VanEck’s report also casts a spotlight on Solana’s Pyth price oracle, suggesting that it could challenge the dominance of Chainlink in terms of total value secured. With the continued growth of TVL across high-throughput chains like Solana and the struggles faced by Chainlink in achieving institutional adoption of its LINK token, the forecasted market share gain for Pyth appears increasingly plausible.

The numbers further bolster Solana’s position. Its TVL has experienced remarkable growth, surging over 160% in the past month alone to nearly $860 million, as per DefiLlama data. While this figure is a considerable leap from previous months, it still falls short of the peak reached in November 2021, when TVL soared to $10 billion.

Meanwhile, Solana’s native token, SOL, has also been on an upward trajectory, witnessing a surge of over 25% in the past week and trading at around $73 at the time of writing, according to CoinGecko.

As the crypto market continues to evolve and institutional interest intensifies, Solana’s potential entry into the spot ETF domain could mark a significant milestone, opening up new avenues for investors and further solidifying its position in the blockchain ecosystem.

The post VanEck Positive on Solana Spot ETF- How Much Boost Will it be to SOL Prices? appeared first on Crypto News Focus.

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