This is the regulation of open era for digital assets in the United States – and not just because the incoming president has released a Solana Memecoin on the eve of his inauguration. Today, these and other memecoins have been proposed as properties for a new killing of Cryptocurrency ETFs. In just a month, the US crypto market came from dealing with an absurd amount of obstruction to an absurd value of, good, absurd.
While I could hardly imagine a financial advisor telling me, “you are partly not allocated to the $ Trump coin,” the fact is that these new currencies can be valid properties for an ETF. Another perspective is that they are completely useless.
A more generous view is that they are a form of creative expression. They are not Mozart’s symphony, sure, but these coins – $ bonk, $ penguin – clearly with cultural value. I see why some investors, retail and otherwise, will be interested in an ETF of this type.
It brings us to Solana, which is now essentially the 3 -sized owner in terms of the market cap and the largest in the largest in terms of network use. Bitcoin, while initially thought of as a type of digital cash, appeared as a digital value store. And Solana took the mantle of a blockchain smart contract with a unique historical proof that the potential power of all types of blockchain -based applications. It’s time for a Solana ETF.
Read more: ‘Early’: How Solana competes in Ethereum for institutional interest
The ground is there. It took 10 long years and a lawsuit to approve Bitcoin ETF. After more challenges, an Ethereum ETF was also approved – with an asterisk. Everyone who included the “staking” rewards in their applications had to strike it. Through this, the SEC has effectively stated that those who give (and investors) may not participate in the management of these blockchains, but may invest in them.
As a result, every investor who bought at an Ethereum ETF since last May has not got the opportunity to earn the yield in their possession – harvest that comes directly from supporting the security of the blockchain itself. If, instead of ETF shares, these investors buy the same amount of Ethereum and staked it (for example, with Coinbase), they can earn, say, 2-4% APYIn exchange for letting their ETH be used to keep the blockchain safe. Regardless of your politics, and yet you feel about cryptocurrencies, the fact is that it puts American investors. European investors already have ETPs for other currencies, and they also have access to staking rewards through them.
And yet, in the US, we are still waiting for a Solana ETF of any kind. And it certainly does not include staking to start, as those who gave from the Ethereum case learned not to include it. In my view, European approval of staking ETPs should set the precedent for a staking ETF in the United States.
As for why staking ETF should be for Solana, well – the fact that the president’s memecoin is released in Solana has no accident. It is a popular blockchain that can handle the billion -billion volume of transaction, even unexpectedly. Its scalability and power will inevitably apply to real-world assets in Trade, and any other number of real-world use cases. Not providing access to accessing to invest in this technology through their traditional financial accounts is like if we limited investors to invest in Amazon or Google in their initial offerings. This is why a Solana ETF should be quickly approved: to give the wide retail and institutional investors the next largest largest owner after Bitcoin and Ethereum.
Simply put: Solana has finished for an ETF of itself, and I encourage new SEC leadership to approve the applications they inherited from those with Grayscale, Vaneck, 21shares, Canary Capital, and Bitwise – and also encouraged them to re -reintegrated staking rewards in their proposals. (Canary application reaches a Second Stage of SEC analysisindicating that it may be approved in due course.)
It’s still early, so we haven’t seen the long -term impact of this administration’s approach to cryptocurrency. But it is possible that it can be pushed through a new, better outline for asset-asset products. That’s worth the hype.
