VanEck and 21Shares are intensifying their efforts to introduce a Solana-centric ETF (exchange-traded fund) in the United States. These companies have previously filed with the Securities and Exchange Commission (SEC) and have now submitted a proposal to the Chicago Board Options Exchange (Cboe).
Submitting to Cboe represents progress. The exchange plays a crucial role in ensuring that such ETFs meet regulatory and operational standards before being listed on the market.
Momentum Increases for a Solana Spot ETF... But It's Not Easy
VanEck and 21Shares, as asset management companies, have applied for a Solana ETF on the Cboe BZX Exchange, along with Bitwise and Canary Capital. Bloomberg ETF analyst James Seyffart confirmed this development on X (formerly Twitter) on Friday morning.
"There are a total of 4 Solana ETFs filed with CBOE. One each from VanEck, 21Shares, Canary Capital, and Bitwise. The ball is now in the SEC's court." - James Seyffart, Bloomberg ETF Analyst mentioned.
This represents an important development in the cryptocurrency investment product space. The proposed ETFs are classified as "commodity-based trust shares" under Rule 14.11(e)(4). These applications are now awaiting formal approval from the SEC.
Cboe's move to list 4 Solana ETFs underscores the exchange's desire to expand its offering of cryptocurrency products. This proposal aligns with the exchange's efforts to integrate digital assets into the traditional market. With VanEck, 21Shares, Bitwise, and Canary Capital leading the charge, the introduction of Solana ETFs could increase the visibility and adoption of the blockchain.
If successful, these applications could strengthen Solana's position within the cryptocurrency ecosystem. This could facilitate liquidity and influence broader market trends. According to BeInCrypto data, Solana's token has risen nearly 10% amid optimism around the ETF. At the time of writing, SOL was trading at $259.20.
VanEck and 21Shares had previously filed for a Solana ETF with the SEC in June 2024. These initial applications laid the groundwork for the recent Cboe submissions. Submitting to the Cboe BZX Exchange is a crucial step, as the exchange reviews compliance and operational standards before potential listing.
Solana Spot ETF Approval Hinges on SEC Easing Standards
If the SEC formally accepts the proposals, a decision could come as early as August 2025. Approval would provide investors with new opportunities to access Solana-related assets, potentially increasing the blockchain's market influence.
"...if the SEC greenlights this - it'll likely be in early August." - James Seyffart, Bloomberg ETF Analyst added.
Meanwhile, Solana continues to garner attention for its speed and scalability as a high-performance blockchain. The interest from major institutions like VanEck, 21Shares, Bitwise, and Canary Capital reflects confidence in its potential. Bitwise recently filed an S-1 registration form with the SEC, which came a day after applying to establish a trust company for the proposed fund in Delaware.
The resurgence of cryptocurrency enthusiasm is partially attributed to Donald Trump's political comeback. The focus on regulatory easing under the Trump administration has sparked hope for a more favorable environment for cryptocurrency innovations, including ETFs.
While negotiations with the SEC are "ongoing" and approval seems imminent, challenges remain. Earlier this year, Solana ETF application forms were briefly removed from the Cboe website, raising concerns about procedural or regulatory hurdles. However, the reappearance of these applications has reassured market observers.
The SEC's decision could set a precedent for future cryptocurrency-related ETFs. The approval process involves rigorous review to ensure investor protection and regulatory compliance. If approved, these ETFs could democratize Solana investments, making them attractive to both institutional and individual investors.
On the other hand, the securities regulator has delayed a decision on Franklin Templeton's proposed cryptocurrency index ETF. The deadline has been reported as January 6, 2025, with the SEC stating that it needs additional review time.
