As an analyst with over two decades of experience in the financial industry, I’ve witnessed the evolution of investment products from traditional stocks and bonds to the digital assets we see today. The recent filings for Solana ETFs by VanEck, 21Shares, Bitwise, and Canary Capital are a testament to the growing maturity and acceptance of cryptocurrencies in the mainstream financial world.
VanEck and 21Shares are stepping up initiatives to launch Solana-centered ETFs in the United States. They have submitted their plans to the Chicago Board Options Exchange (Cboe), having previously applied to the Securities and Exchange Commission (SEC).
Submitting applications to Cboe indicates advancement, since this exchange is instrumental in verifying that the listed ETFs comply with regulatory and functional requirements prior to being traded on the market.
Solana ETF Momentum Grows Despite Challenges
Leading asset managers VanEck and 21Shares have teamed up with Bitwise and Canary Capital to submit applications for Solana ETFs on the Cboe BZX Exchange. This news was shared by James Seyffart, an analyst at Bloomberg ETF, in a post published early on Friday (originally posted on X, formerly Twitter).
A grand total of four Solana-based ETFs have been submitted by CBOE to regulatory bodies. These include proposals from VanEck, 21Shares Canary Capital, and Bitwise. As Seyffart pointed out, it’s now the Securities and Exchange Commission’s turn to review these applications.
This new proposal for cryptocurrency-related ETFs represents a substantial advancement in investment opportunities within this field. According to Rule 14.11 (e) (4), these potential ETFs are categorized as “shares of commodity trusts.” Now, the regulatory body, the SEC, will review and consider accepting these applications.
Cboe’s decision to list four ETFs based on Solana underscores its dedication to broadening its range of cryptocurrency investments. This initiative aligns with the exchange’s strategy to merge digital assets into conventional markets. With VanEck, 21Shares, Bitwise, and Canary Capital leading the charge, the arrival of Solana ETFs may boost the blockchain’s profile and adoption.
If these submissions prove successful, they could strengthen Solana’s position within the cryptocurrency marketplace, possibly increasing liquidity and impacting broader market movements. According to data from BeInCrypto, the token that powers Solana has risen by nearly 10% due to optimism surrounding ETFs. At this moment, one SOL is being traded for approximately $259.20.
In June 2024, both VanEck and 21Shares submitted separate applications for Solana ETFs to the SEC. These early submissions paved the way for their subsequent applications with the Cboe Exchange. This sequence suggests that they are moving closer to receiving regulatory approval. Filing with the Cboe BZX Exchange is a crucial step because it allows the exchange to assess compliance and operational standards before considering listing the ETFs.
Solana ETF Hopes Now Rest With US SEC
Should the SEC approve the proposed plans, a potential decision might be reached by August 2025. Once approved, these proposals could open up fresh avenues for investors to invest in Solana-linked assets via ETFs, which could enhance the blockchain’s impact on the market.
“…if the SEC acknowledges it — will be around early August,” Seyffart added.
Currently, Solana is garnering interest due to its speed and scalability as a top-tier blockchain. Significant institutional attention from companies like VanEck, 21Shares, Bitwise, and Canary Capital points to an increasing belief in its potential. Notably, Bitwise has submitted its S-1 registration form with the SEC, following closely after submitting paperwork to set up a trust entity for the proposed fund in Delaware.
The recent surge of interest in cryptocurrencies, partly driven by Donald Trump’s political return, has ignited optimism within the sector. The prospect of a Trump administration focusing on reducing regulations has stirred expectations for a more welcoming climate for cryptocurrency advancements, such as ETFs.
Despite ongoing talks with the SEC that seem to be moving forward and an approval appearing imminent, there are still obstacles to overcome. Earlier in the year, documents linked to Solana ETF applications mysteriously vanished from the Cboe website, sparking worries about potential procedural or regulatory issues. However, the return of these documents has given observers a sense of relief.
It’s expected that the SEC’s decision will pave the way for how future exchange-traded funds (ETFs) related to cryptocurrencies are handled. This approval process is thorough, aiming to safeguard investors and adhere to regulatory standards. If successful, these ETFs could make it easier for a wide range of investors, including institutions and individuals, to invest in Solana.
In other locations, the Securities and Exchange Commission (SEC) has delayed making a decision about Franklin Templeton’s plan to launch a cryptocurrency index ETF. The new deadline is now set for January 6, 2025, with the SEC stating that more time is required for thorough examination.
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2024-11-22 11:27