Solana ETF Momentum Grows Amid Reports of SEC Engagement

CN
3 days ago

Discussions about a solana (SOL) spot exchange-traded fund (ETF) between the U.S. Securities and Exchange Commission (SEC) staff and prospective issuers are reportedly moving forward, according to Fox Business journalist Eleanor Terrett. Sources indicate the SEC is actively engaging with S-1 applications, signaling that 19b-4 filings, which are necessary for listing the funds, could be submitted soon by exchanges representing issuers. The 19b-4 forms mark a critical step in the ETF approval process, allowing the SEC to formally review whether such products can be listed.

Asset management firms Vaneck, 21shares, and Canary Funds have already filed S-1s for a solana ETF, with Bitwise announcing plans to file one as well. Exchanges like the Chicago Board Options Exchange (CBOE) would file 19b-4 forms on behalf of these issuers. Upon SEC acknowledgment of these filings, the agency has 240 days to approve or deny them. However, prior 19b-4 filings from Vaneck and 21shares were withdrawn in August, reportedly reflecting hesitation under SEC Chair Gary Gensler’s leadership.

Recent engagement from SEC staff and a possible shift in regulatory sentiment with an anticipated pro-crypto administration have bolstered optimism among issuers. Many now see a realistic chance of a solana ETF receiving approval by 2025, signaling potential change in the agency’s stance toward cryptocurrency products.

In January, the SEC approved 11 spot bitcoin ETFs, marking a significant milestone for cryptocurrency investment. This approval was followed by the SEC’s green light for spot ethereum ETFs in July, further integrating digital assets into mainstream finance. Recently, asset managers like Bitwise and 21shares have filed for spot XRP ETFs. However, the SEC’s ongoing appeal against a 2023 court ruling that XRP is not a security adds uncertainty to the approval prospects of XRP ETFs.

Nonetheless, speculation is mounting that SEC Chair Gensler may resign following President-elect Donald Trump’s victory, as Trump has pledged to replace Gensler upon taking office. A leadership change could signal a shift toward more crypto-friendly policies at the SEC, potentially easing regulatory pressures on the cryptocurrency industry.

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