Gushiken Yona
The Sol ETF dream may be over before it begins. VanEck and 21Shares’ 19b-4 filings for their respective Solana ETFs have mysteriously vanished from the CBOE website. A finance lawyer suggested the abrupt removal signals the Securities and Exchange Commission’s (SEC) stance on Solana ETFs: dead on arrival.
These forms, crucial for any exchange seeking to list a new product, were filed on July 8. Typically, when an exchange files a 19b-4, the SEC issues a Notice of Filing, initiating a formal review process. However, in this case, no such notice was released.
This unusual circumstance has prompted speculation within the industry. Veteran finance lawyer and general partner at a venture capital firm Scott Johnson offered a possible explanation. According to him, “Gary [Gensler, SEC Chair] says SOL ETF is DOA under his watch.”
His comments suggested that the SEC may have communicated informally with the Chicago Board Options Exchange (CBOE), indicating that the Solana ETFs were improperly filed under the category of Commodity-Based Trust Shares. According to the lawyer, this misclassification could be the reason behind the absence of a formal written disapproval order from the SEC.
The lawyer further explained that the absence of a formal SEC notice could indicate that the applications were considered flawed from the start. “Instead of running through the full 19b-4 process, I’m assuming Gary notified CBOE that these SOL apps were improperly filed as Commodity-Based Trust Shares (because he thinks SOL isn’t a commodity),” he stated. This would explain why the forms were quietly removed from the CBOE website without a formal withdrawal notice.
He drew parallels with the SEC’s approach to the Ethereum (ETH) ETF applications, where similar issues arose. “This would be in line with how the SEC was considering denying the ETH ETF applications. However, it had already started the 19b-4 process at that point, so it had to have provided a formal approval/disapproval order regardless. And as we know, they decided to approve,” he added.
Johnson suggested that issuers interested in filing for a Solana ETF might face additional hurdles. “Issuers wanting to file for a SOL ETF and actually get a fair 19b-4 hearing will now likely need for the exchange-related enforcement actions to be completely resolved first. Some speculation here, but that’s my take,” he concluded.
This situation underscored the complexities and regulatory challenges that crypto ETFs continue to face, particularly in an environment where the classification of digital assets remains contentious. The removal of these forms and the lack of transparency from the SEC further highlight the need for clarity and consistency in the regulatory process.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
