On Thursday, it was unveiled that the U.S. Securities and Exchange Commission (SEC) is actively involved in discussions with several asset management firms about launching a new spot Solana ETF market. The firms involved in these discussions include VanEck, 21Shares, Canary Capital, and Bitwise, all of which are keen on introducing products linked to Solana’s price.
Progress in SEC’s Solana ETF Discussions
According to sources familiar with the ongoing talks, there is significant progress in discussions between SEC staff and the ETF issuers. The SEC is currently assessing S-1 filings, a crucial step in the approval process for a Solana ETF.
Growing Optimism Among Stakeholders
There is a rising sense of optimism among industry stakeholders, fueled by the expectation that exchanges representing these issuers will soon submit 19b4 filings. These filings are essential for progressing toward ETF listings, as they request SEC approval to list the proposed ETFs on exchanges like the Chicago Board Options Exchange (CBOE). Upon receiving these filings, the SEC has a 240-day period to make a decision on whether to approve or deny the products.
Current Status of ETF Filings
As of now, VanEck and 21Shares, both of whom have previously ventured into the Ethereum and Bitcoin ETF markets with SEC approval earlier this year, have submitted their S-1 filings for a Solana ETF. Canary Capital has also made its submission, while Bitwise recently announced its intention to file. However, it’s important to note that the filing of 19b4 forms does not guarantee approval from the SEC. Past applications from VanEck and 21Shares faced hurdles, with their filings being removed from the CBOE’s website in August.
SEC’s Regulatory Stance
Observers have speculated that the SEC, under the leadership of Chairman Gary Gensler, has maintained a stringent regulatory approach, which might have contributed to the reluctance in approving such listings. This regulatory stance has posed significant challenges for the approval of cryptocurrency ETFs.
Potential Changes in the SEC’s Approach by 2025
Despite previous setbacks, there is renewed optimism among investors, thanks to recent engagements with SEC staff and the anticipated pro-crypto policies of the incoming administration led by President-elect Donald Trump. This change in leadership is expected to create a more favorable environment for cryptocurrency-related financial products, potentially paving the way for a Solana ETF approval by 2025.
Impact of Leadership Changes
The anticipation surrounding the Solana ETF has gained additional momentum following Gensler’s announcement of his departure from the SEC, with his last day in office set for January 20, 2025. This announcement comes after months of speculation regarding his future, especially since Donald Trump had previously expressed intentions to replace Gensler on his first day in office.
Broader Implications for Cryptocurrency ETFs
In addition to the Solana ETF, other cryptocurrency ETFs, including those for XRP and Hedera’s HBAR token, are also in the pipeline. These products may benefit from the evolving regulatory landscape. As the situation continues to unfold, the potential for a more accommodating regulatory approach could significantly reshape the cryptocurrency investment landscape in the United States, aligning with the plans Trump outlined during his presidential campaign.
At the time of writing, Solana (SOL) is experiencing impressive growth, with its price reaching a new all-time high above $260, making it the fourth largest cryptocurrency on the market.
