It is currently a period where regulatory measures for digital assets are being explored in the United States, especially after the release of a Solana memecoin by the newly inaugurated president. Now, various memecoins are being considered as viable assets for upcoming cryptocurrency ETFs.
While it seems implausible for a financial advisor to suggest an investment in a memecoin like $TRUMP, they could still be seen as legitimate ETF components. Conversely, some may argue that they are completely devoid of value.
A potential positive light is that they represent an innovative form of expression; they may not be classical masterpieces, but currencies like $BONK and $PENGU hold cultural significance and could attract investor interest.
This brings attention to Solana, now recognized as the third largest asset by market cap and the foremost in terms of network utilization. Originally designed as a digital currency, Bitcoin is now viewed as a store of value. Solana, utilizing its distinct Proof of History, is poised to enhance diverse blockchain applications, warranting a case for its own ETF.
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The foundation is established. The approval process for Bitcoin’s ETF took a decade and involved legal disputes. Ethereum’s ETF was approved with constraints that prevent issuers from participating in blockchain governance, thus limiting investors to mere asset acquisition.
Consequently, investors with Ethereum ETF shares since last May have missed out on staking opportunities that could yield 2-4% annually — a direct benefit of maintaining network security. This imposition places American investors at a disadvantage, especially when European counterparts can access ETPs allowing for yield through staking.
Despite this, a Solana ETF remains absent in the U.S., and it is unlikely to involve staking, as proven by the Ethereum case. It’s plausible that Europe’s model for staking ETPs could pave the way for a U.S. staking ETF.
The rationale for pushing a Solana ETF is bolstered by its connection to the presidential memecoin, highlighting its capability to handle vast transaction volumes seamlessly. Limiting investors’ access to such investments parallels restricting them from investing in early Amazon or Google offerings, making an urgent case for approving Solana ETFs to enhance retail and institutional investment opportunities.
In conclusion, the time is ripe for a Solana ETF, and I urge the SEC’s new leadership to approve pending applications from firms like Grayscale, VanEck, 21Shares, Canary Capital, and Bitwise while advocating for the reintegration of staking rewards in these proposals. While it is still early in assessing the long-term effects of this administration’s policy toward cryptocurrency, the potential for establishing a superior regulatory framework for crypto-asset products is enticing.
