Solana (SOL) has surged around 12% in the last seven days following VanEck’s recent filing for a spot Solana exchange-traded fund (ETF).
VanEck, known for being one of the pioneering issuers of Bitcoin ETFs, aims to offer investors direct exposure to SOL, sparking renewed interest and significant price gains in the asset.
Ryan Lee, chief analyst at Bitget Research, said, data shows that on June 27, driven by the first Solana ETF application from VanEck, the SOL ecosystem saw a collective rise, with the entire sector up nearly 9% in 24 hours and the number of traders increasing by 30%.
Triggered by Solana, several Solana Memecoins also led in gains, such as BOME, which rose 15% with an 80% increase in traders, and WEN, which rose 15.5% with a 25% increase in traders.
Solana ETPs, ETNs Already Trading in Europe
In Europe, there are several Solana exchange-traded products already actively trading on exchanges.
CoinShares has a Coinshares Physical Staked Solana ETN that tracks the Solana index. 21Shares Solana Staking ETP.
In March, Figment Europe Ltd, a provider of institutional staking infrastructure, and Apex Group listed the “Figment Solana Plus Staking Rewards” ETP will trade under the ticker “SOLF.”
SOL May Become Third Major Crypto
According to Bitget analyst Lee, SOL may become the third major crypto asset after BTC and ETH if it is to have its ETF, thanks to its recent growth.
“Solana’s DeFi ecosystem has grown rapidly, with total TVL rising from approximately $1.3 billion at the beginning of 2024 to about $4.5 billion currently, an increase of about 346%,” said Lee.
Bitget Research attributes this growth to the concentrated launch of Solana ecosystem projects, including JITO, Jupiter, Kamino, Marginfi, and Drift.
“These projects have greatly enriched the Solana ecosystem, bringing more DeFi features to the Solana chain,” adds Lee.
What is Solana
Solana is a blockchain platform designed for decentralized applications (dApps) and crypto-currency transactions.
Known for its speed and scalability, Solana can process over 65,000 transactions per second with minimal fees, due to its Proof of History (PoH) consensus mechanism combined with Proof of Stake (PoS).
This makes it a strong competitor to Ethereum, attracting developers and projects to its ecosystem.
The prospect of a spot Solana ETF in the U.S. has heightened investor optimism, suggesting a broader acceptance of Solana in traditional financial markets.
If approved, VanEck’s ETF would allow investors to gain exposure to SOL without directly purchasing the cryptocurrency, potentially driving further institutional interest and adoption.
This latest development shows Solana’s growth in the crypto space.
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