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Evgeny 🎩
@chipcr
VanEck Files for Solana Trust I've summarised the lengthy SEC application, so you don't have to. 1/ Overview - VanEck, a prominent investment manager, has filed with the SEC to establish the VanEck Solana Trust. - The trust aims to offer investors exposure to the cryptocurrency Solana (SOL) through traditional investment vehicles. - The trust will allow investors to purchase shares, avoiding the complexities and risks associated with direct cryptocurrency ownership. Structure and Management - VanEck will act as the sponsor and manage the trust's assets. - The Bank of New York Mellon will serve as the administrator and custodian. - As of June 24, 2024, the trust is awaiting SEC approval to commence operations. - No part of SOL can be used for staking in any form.
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Evgeny 🎩 pfp
Evgeny 🎩
@chipcr
2/ Risks and Opportunities - Key risks include cryptocurrency market volatility, regulatory oversight, and technological risks associated with the Solana blockchain platform. - Despite these risks, VanEck believes Solana has significant growth potential due to its unique technological features and strong support from developers and investors. Target Audience and Prospects - The VanEck Solana Trust targets institutional and retail investors seeking to diversify their portfolios with cryptocurrency assets. - The trust aims to attract substantial investment due to the growing interest in cryptocurrencies and the popularity of the Solana platform. Regulatory Information - Detailed information about the trust, its structure, and associated risks is available in the filing submitted to the SEC. - The document is accessible on the official SEC website via this [link](https://www.sec.gov/Archives/edgar/data/2028541/000162828024030249/vanecksolanatrusts-1.htm).
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Evgeny 🎩 pfp
Evgeny 🎩
@chipcr
3/ End of Summary. My take: So, VanEck has submitted an application for a spot Solana ETF, which, while anticipated, is the first of its kind. More to follow. Typically, approvals take years and require prior futures trading on CME. However, recent developments have been unusual—unexpected approval of a bitcoin ETF and a rapid start of trading within days, followed by an even more surprising approval of a spot ETF for ether. Adding to the uncertainty is the fact that the SEC considers Solana a security, which led to Robinhood delisting it. Given that crypto has become a notable topic in the upcoming election, there is a chance that the Solana ETF might be approved before the US elections. A positive aspect of the application is that no Solana will be used for staking, something the SEC would not approve. Solana jumped 7% in response, and the main Solana meme WIF also saw activity. As always, be cautious and avoid chasing pumps.
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