Michaela Alvez
The U.S. Securities and Exchange Commission (SEC) is advancing discussions with issuers over the potential launch of a spot Solana ETF (exchange-traded fund) as it begins reviewing S-1 applications.
Fox Business Journalist Eleanor Terrett, reports that global investment manager VanEck, 21Shares, and Canary Capital have all filed S-1’s for a Solana ETF. In addition, Bitwise Asset Management recently revealed plans to file an S-1, further expanding the number of firms seeking regulatory approval for cryptocurrency-related products.
Terrett also writes that there is a “good chance” that 19b-4 filings will be made on behalf of prospective issuers, the next step in the ETF approval process.
However, the submission of 19b-4 forms does not ensure SEC authorization. Following the SEC’s approval of 19b-4 forms for spot Ethereum ETFs, VanEck and 21Shares followed suit and submitted a filing for a Solana ETF in June 2024. Canary Capital subsequently submitted similar filings in October.
Unfortunately, in August, 19b-4 filings from VanEck and 21Shares were removed from the Chicago Board Options Exchange’s (CBOE) website. This sparked speculation among industry experts, with many suggesting that the removals reflected the SEC’s reluctance to approve such listings under the leadership of Chair Gary Gensler.
The CBOE is set to submit 19b-4 forms on behalf of ETF issuers and seek approval from the SEC to list the proposed ETFs. After the SEC acknowledges receipt of the filings, it will have up to 240 days to either say “yes” to or deny the applications.
Terrett reported that issuers have expressed renewed optimism about the approval of a Solana ETF, citing recent interactions with SEC staff and the anticipated shift toward a more crypto-friendly administration in 2025.
Currently, the only two crypto ETFs available to U.S. investors are focused on Bitcoin and Ethereum — the two largest and most well-established digital assets. Despite growing popularity, other cryptocurrencies, often referred to as altcoins, have yet to see ETFs gain approval from the SEC.
Under its current leadership, the SEC has been conservative in approving ETFs for altcoins. Nevertheless, some industry observers suggest that a shift in leadership, along with President-elect Donald Trump’s pro-crypto position, could reshape the regulatory environment.
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Michaela 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 Magazine and The Shib Daily are the official media and publications 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.
