According to a tweet by James Seyffart, an ETF analyst at Bloomberg, the Cboe exchange has just filed 19b-4 applications for 4 Solana ETFs, from VanEck, Canary, Bitwise, and 21Shares. Fox News reporter Eleanor Terret also pointed out that the SEC is engaging with the applicants and making progress. With the SEC chairman set to step down, it has sparked new optimism that Solana ETFs may be approved by 2025. SOL rose 7.8% yesterday.
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Fox News reporter Eleanor Terret cited sources saying the U.S. Securities and Exchange Commission is now "engaging" with Solana ETF applicants and making progress. The SEC is currently processing the S-1 filings. These sources said we "very likely" will see some 19b-4 filings from exchange representatives on behalf of potential issuers in the coming days, which is the next step in the ETF approval process.
The Cboe exchange is representing issuers requesting the SEC to allow them to list potential ETFs. Once the SEC confirms receipt of the document, there will be a 240-day window to approve or reject the product. Submitting a 19b-4 form does not guarantee SEC approval. In fact, 19b-4 filings previously submitted by VanEck and 21Shares were removed from the Cboe website in August, speculated to be due to SEC Chairman Gary Gensler's reluctance to approve such products. Now, issuers say the recent engagement from SEC staff, combined with a more crypto-friendly incoming administration, has sparked new optimism that Solana ETFs may be approved at some point in 2025.
Will Gary Gensler's departure lead to more crypto ETF approvals?
Bloomberg ETF analyst Eric Balchunas said the big question is whether the SEC will acknowledge these ETFs within two weeks, or tell them to withdraw like last time. Their interpretation is that Cboe is just pushing the limits, optimistically believing the limping SEC will routinely confirm the filings until the new (more lenient) leadership takes over. But even then, the lawsuit to classify Solana as a security would still need to be dropped.
All of this is possible, but it is more driven by hope than any signals from the staff.
The SEC approved 11 spot Bitcoin ETFs in January and 8 spot Ethereum ETFs in July this year. With SEC Chairman Gary Gensler confirmed to step down, there may indeed be hope for more crypto ETF approvals.
(SEC Chair Gary Gensler to step down on Inauguration Day, who are the top candidates?)
SOL rises 7.8% in 24 hours, becomes 3rd largest cryptocurrency by market cap
Solana (SOL) rose 7.8% in the past 24 hours and is up 149% year-to-date, making it the 3rd largest cryptocurrency (excluding stablecoins) by market cap.
