Solana ETFs may not be coming to market anytime soon. It appears that the SEC is not ready to approve a third crypto ETF. While BTC and ETH ETFs are shaking up the market, the Solana ETF filing has been removed from the CBOE website.
Application for SOL ETF
On July 8thand This year, VanEck and 21Shares filed Form 19b-4 with the SEC. These companies filed the forms to launch and trade the Solana ETF on CBOE. Form 19b-4 is the second form filed to notify the SEC of a proposed rule change for a new exchange-traded product. It requires the filing of a Form S-1. VanEck filed the S-1 on June 27, followed by 21Shares on June 29and. Once these forms are filed with the Securities and Exchange Commission, they must issue a notice of completion to acknowledge receipt of the filings. After this, the regulators have a window of 240 calendar days to approve or reject the product.
Signs of rejection
The SEC never published the filing for the Solana ETF. This was the first sign that the SOL ETF would not be approved. VanEck and 21Shares previously attempted to launch an ETF for Solana, but were rejected by the SEC. This was their second attempt. While Bitcoin and Ether ETFs are making big moves in the market, the SEC is not ready to approve an ETF for the fifth-largest cryptocurrency. ETF Shop President Nate Geraci made an X-post saying that Solana ETFs would not be approved anytime soon under the current administration.
According to the experts, a major reason for this could be the SEC’s stance towards Solana. We know very well that the Securities and Exchange Commission has classified a large number of cryptos as securities and Solana is one of them. VanEck and 21Shares’ 19b-4 forms for Solana ETF have been removed from the Cboe website. While crypto people are talking about it, there is no comment from VanEck and 21Shares on their X regarding this.
Another X user Summers provided details in his post about the documents that were removed from the cboe website. He even shared screenshots from the website showing missing filling documents.
What to expect
In June 2018, SEC Director of Corporate Finance William Hinman stated that the commission will not treat Bitcoin and Ether as securities. The SEC has released a list of 19 cryptos that they consider securities and Solana is one of them. This could be the main reason why the SEC is not ready to let SOL ETF hit the market. On the other hand, the first spot Solana ETF is waiting for approval by the Brazilian Stock Exchange.
Experts believe that the SEC will not allow the launch of SOL ETF until there is a change in the administration. People have their eyes on the presidential election as Donald Trump promised during the Nashville conference that he will fire Gary, the chairman of the SEC. The crypto community is waiting for the election as it will determine whether the US will become a crypto-nurturing nation or not.
