Key Takeaways
What does the VanEck Solana ETF want to offer investors?
The ETF provides regulated exposure to Solana tokens while allowing investors to earn staking rewards through trusted validators.
Who will provide custody services for the ETF’s investments?
Custody services are provided by Gemini and Coinbase to ensure the secure storage of SOL tokens.
Amid growing anticipation over the SEC’s long-delayed approvals of crypto ETFs, VanEck said submitted his fifth amended application for the Spot Solana [SOL] ETF.
VanEck’s Solana ETF change
The proposal was filed with the SEC on October 14, detailing how the fund will operate.
According to the filing, the ETF now aims to give investors regulated exposure to SOL tokens and includes staking rewards through trusted validators, allowing investors to earn returns while holding SOL.
Gemini and Coinbase will provide custodial services for the fund’s assets and ensure safe storage of the digital assets. The latest update further specifies a management fee of 0.30% and clarifies the fund’s deployment strategy.
Additionally, VanEck also outlined a liquidity risk policy for its staking model to facilitate redemptions even in volatile market conditions.
Finally, the fund will maintain a 5% buffer to prevent settlement delays, typically two to three days on Solana, blocking investors looking to redeem their money.
There is optimism around the SOL ETF
The approval of the ETF has been temporarily postponed due to the US government shutdown. However, the aim is to offer institutional investors a regulated route to Solana.
Senior ETF Analyst at Bloomberg Eric Balchunas, noted,
“Solana spot fee 30 basis points, striking fee 28 basis points. It seems reasonable, I love how clear they make it, people need to be able to quickly compare and contrast. With the Solana ETF fees being so low out of the box, this is a good sign, which will make them very attractive versus other funds and intermediaries.”
In addition, other analysts to suggest that a ‘buy the rumor, sell the news’ scenario could occur.
In fact, data from Polymarkt indicate high chances of approval, indicating that 2025 could see the launch of the SOL ETF.
Not only this, even JP Morgan predicted that the next Solana ETFs could attract around $1.5 billion in inflows during their first year, a solid start, albeit modest compared to Bitcoin. [BTC] or ether [ETH] ETF is launched.