SEC Engages in Talks for New Solana ETF Launch with Asset Managers
On Thursday, Fox reporter Eleanor Terret reported that the US Securities and Exchange Commission (SEC) is in discussions with asset managers about launching a new spot Solana ETF market. Firms involved include VanEck, 21Shares, Canary Capital, and Bitwise, all aiming to introduce products linked to Solana's price.
SEC Progresses On Solana ETF Talks
Sources cited by Terret indicate that discussions between SEC staff and issuers are "progressing." The SEC is reviewing S-1 filings, which are essential for the approval process of the Solana ETF.
There is increasing optimism that exchanges will soon submit 19b4 filings representing these issuers, which is necessary for advancing ETF listings.
These 19b4 forms will be filed by exchanges like the Chicago Board Options Exchange (CBOE) on behalf of issuers seeking SEC approval. Once these filings are submitted, the SEC has a 240-day period to approve or deny them.
VanEck, 21Shares, and Canary Capital have submitted their S-1 filings for a Solana ETF, while Bitwise announced its intention to file recently. However, the submission of 19b4 filings does not ensure approval; previous applications from VanEck and 21Shares were removed from the CBOE’s website in August.
Industry observers speculate that the SEC, under Chairman Gary Gensler, may be hesitant to approve such listings due to a stricter regulatory stance.
Potential Shift In SEC Approach For 2025
Despite earlier setbacks, investors are hopeful following recent engagements with SEC staff and the expected pro-crypto policies of the incoming administration led by President-elect Donald Trump. This leadership change may create a more favorable environment for cryptocurrency-related financial products, possibly leading to Solana ETF approval in 2025.
The anticipation around the Solana ETF increased after Gensler confirmed his departure from the SEC, with January 20, 2025, being his last day in office. This announcement followed speculation about his future, especially as Trump indicated intentions to replace Gensler on his first day.
In addition to the Solana ETF, other cryptocurrency ETFs, including those for XRP and Hedera’s HBAR token, are also in development and may benefit from the changing regulatory landscape. A more accommodating regulatory approach could significantly alter the cryptocurrency investment landscape in the United States, aligning with Trump's campaign plans.
Currently, SOL is trading at $261, reflecting a 25% increase over the past week and marking an all-time high for the fourth-largest cryptocurrency.
Featured image from DALL-E, chart from TradingView.com