News

VanEck Declares Solana a Commodity, Triggering 7% Price Surge

Cryptocurrency-based exchange-traded funds (ETFs) remain prominent in the US, with VanEck’s latest filing focusing on Solana, the fifth-largest digital asset.

Following the announcement, Solana’s price surged by 7%, reaching $150.

Matthew Sigel, VanEck’s Head of Digital Assets Research, highlighted this development on X. He emphasized that the firm sees Solana as similar to Ethereum, describing it as an “open-source blockchain software designed to support various applications, including payments, trading, gaming, and social interactions.”

He also noted that, unlike Ethereum, Solana operates as a “single global state machine” without sharding or layer-2 networks.

The US Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January after a decade-long effort, affirming that Bitcoin is a commodity. Last month, the SEC reluctantly approved spot Ethereum ETFs but delayed their launch due to ongoing uncertainty about Ether’s status.

Solana’s classification remains uncertain. However, Sigel provided several reasons why VanEck considers it a commodity like Ether and Bitcoin.

“We believe the native token, SOL, functions similarly to other digital commodities such as #bitcoin and #ETH. It is utilized to pay for transaction fees and computational services on the blockchain. Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.”

The news prompted an immediate response from SOL’s price, which rose by 7% in minutes. The asset had dropped to $135 amid a market-wide correction but climbed to $150 following the VanEck announcement.

Etan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past.

Recent Posts

Predipie: Revolutionizing Football Prediction Games on the TON Network

Dubai, UAE – 12/19/2024 – Predipie is a pioneering project situated at the exciting intersection…

3 days ago

Reploy AI Announces the Release of Reploy 7b and Its $RAI Presale

Reploy AI, a crypto project that promises to transform the Web3 development workflow with AI-powered…

1 week ago

Prebit: Fastest Perpetual DEX on Binance Smart Chain Unveils Groundbreaking Trading Features, Reaches 100,000 Users

Prebit is the pioneering Perpetual DEX on Binance Smart Chain, setting unprecedented records on the…

2 weeks ago

3 Altcoins to Buy in December 2024 That Could Deliver 20,000x Gains Like Dogecoin and Cardano

The crypto world is buzzing with opportunities this December, and three altcoins to buy are…

2 weeks ago

Ripple Whales Move XRP Gains into an Emerging AI Altcoin Set to Rise from $0.05 to $1 by 2025

After enjoying substantial gains with its recent rally, XRP whales are reportedly moving their profits…

3 weeks ago

XRP Price Forecast: Key Levels To Watch Resistance Moves Closer And ETFSwap (ETFS) Makes Play For 33,000% Returns This Bull Market

As the crypto bull market gains traction, the XRP price tests key resistance levels that…

1 month ago