SEC to Decide on Grayscale’s Solana Trust ETF Today
Today marks the deadline for the US Securities and Exchange Commission (SEC) to respond to Grayscale’s request to convert its Solana Trust (GSOL) into a spot Solana Exchange-Traded Fund (ETF).
Key points:
- The NYSE Arca proposed listing GSOL as a spot Solana ETF on December 4.
- As of January 21, the trust had over 7.2 million outstanding shares.
- The SEC's decision may influence future Solana ETF proposals from firms like VanEck and 21Shares.
- Other firms expect a verdict by January 25 but anticipate similar outcomes.
Impact of the Decision
The ruling will significantly affect the crypto ETF landscape, particularly following former Chair Gary Gensler's strict regulatory stance. Under Gensler, the SEC classified Solana and other cryptocurrencies as securities, complicating ETF approvals.
- Bloomberg ETF analyst James Seyffart predicts no approval for Solana ETFs before next year.
- Seyffart highlighted regulatory challenges due to Solana's security designation.
Future Prospects
For Solana ETFs to gain approval, the regulatory environment needs to change, including appointing a new SEC Chair. Paul Atkins is considered a suitable candidate due to his pro-crypto stance. However, his confirmation process may take months, leaving the SEC with three commissioners: Mark Uyeda, Hester Peirce, and Caroline Crenshaw.