The US Merits Superior Crypto ETFs, Starting with Solana

The regulatory landscape for digital assets in the US has entered a new era, marked by a sudden shift from excessive obstruction to unbridled enthusiasm. In a matter of weeks, the US crypto market has transitioned from facing absurd hurdles to being bombarded with an array of unconventional cryptocurrency ETF proposals. The incoming president's release of a Solana memecoin on the eve of the inauguration has sparked a flurry of interest in these new assets. While some may view these memecoins as legitimate assets for an ETF, others perceive them as entirely useless. A more nuanced perspective recognizes them as a form of creative expression, holding cultural value that may appeal to certain investors. This brings us to Solana, which has emerged as the third-largest asset by market capitalization and the largest in terms of network usage. With its unique Proof of History, Solana has the potential to power a wide range of blockchain-based applications, making a strong case for a Solana ETF. The groundwork for this has been laid, with the approval of Bitcoin and Ethereum ETFs, albeit with certain restrictions. The SEC's decision to disallow staking rewards in these ETFs has effectively barred investors from participating in the governance of these blockchains, putting American investors at a disadvantage compared to their European counterparts. The absence of a Solana ETF in the US is a notable omission, and its approval could provide investors with access to a significant asset. The fact that the president's memecoin was released on Solana is no coincidence, given its popularity, scalability, and potential for real-world applications. Limiting investor access to this technology is comparable to restricting investment in Amazon or Google during their initial public offerings. Therefore, a Solana ETF should be promptly approved, allowing broad retail and institutional investors to access this emerging asset. In summary, Solana is long overdue for an ETF, and the new SEC leadership should expedite the approval process for pending applications, including those from Grayscale, VanEck, 21Shares, Canary Capital, and Bitwise, and encourage the reintroduction of staking rewards into these proposals.