Solana to join spot ETF race in 2024, VanEck predicts

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Investment manager VanEck expects Solana to join the crypto spot ETF wars in 2024 as stated by analysts Matthew Sigel and Patrick Bush in a new report published today: “Solana will join the spot ETF wars thanks to a flurry of asset managers submitting filings.”

The analysts expect Solana to become a top 3 blockchain by market capitalization, total value locked (TVL), and active users within the next two years.

In 2021, VanEck launched a Solana exchange-traded note (ETN) on the German stock exchange Deutsche Börse, signaling its conviction in Solana’s long-term potential. If its spot ETF prediction materializes, it will legitimize Solana and allow mainstream investors easier access to SOL and other tokens in the Solana ecosystem.

A growing number of asset managers are seeking regulatory approval to bring crypto ETFs to market. BlackRock, Fidelity, and HashDex have filed applications with the Securities and Exchange Commission in recent months to bring Bitcoin and Ethereum spot ETFs. Approval of these ETFs could pave the way for acceptance of funds tracking newer tokens like Solana.

Solana’s DeFi comeback

In the report, VanEck also predicted that Solana’s Pyth price oracle could flip dominant leader Chainlink in terms of total value secured.

“As TVL continues to grow across high-throughput chains (like Solana) and Chainlink struggles to find institutional adoption of its LINK token, we expect Pyth to gain meaningful market share,” VanEck’s digital assets team wrote.

Solana’s TVL has witnessed robust growth this year, rising over 160% in the past month to nearly $860 million, according to data from DefiLlama. However, these figures are still considerably less than their $10 billion peak reached in November 2021.

Solana’s native token, SOL, has surged over 25% in the past week, trading around $73 at press time according to CoinGecko.

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