Solana ETF Filings Vanish From Cboe, but Vaneck Says It’s Not Over Yet
Matthew Sigel, VanEck's Head of Assets insists Solana ETF application remains active. | Credit: VanEck.com
Key Takeaways
- VanEck insists their Solana ETF application remains active.
- The SEC has until March 2025 to approve SOL ETFs.
- The SEC previously labeled SOL a security, potentially leading to the filing removal.
- Solana’s network issues and ongoing security debate make experts doubt a near-term ETF approval.
The Ethereum ETF approvals were barely out the door when the crypto sphere began buzzing about Solana being the next in line for a slam-dunk approval.
Issuers, sensing a window of opportunity, quickly sprang into action, filing their proposals to capitalize on the momentum.
However, in a shocking turn of events, the 19b-4 filings from prominent issuers like VanEck and 21Shares suddenly and mysteriously vanished from the CBOE’s website, casting a dark cloud over the prospects of a Solana ETF.
VanEck Confirms SOL ETF Proposal is Alive
In a much-needed breath of fresh air, Matthew Sigel, VanEck’s head of digital assets research, has stepped forward to quell the uncertainty surrounding Solana ETFs, reassuring their proposal remains very much alive despite vanishing from CBOE’s website.
“Some have noticed that the 19b-4 for the VanEck Solana ETF has been removed from the CBOE website. Remember that Exchanges like Nasdaq & CBOE file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). Ours remains in play.”
The development comes as the cryptocurrency community awaits the US Securities and Exchange Commission’s (SEC) decision on the Solana ETF applications. The SEC has until March 2025 to approve or reject the applications.
While industry observers are on high alert as they await potential approval, the path to a Solana ETF remains arduous. The asset faces significant regulatory hurdles, particularly given the SEC’s classification of Solana as a security.
The SEC officially declared the SOL token a security in June 2023, filing suits against Binance and Coinbase for offering the asset on their platforms.
The regulator’s decision was based on several factors, including the expectation that investors would profit from the efforts of others, as well as how the token was being used and marketed.
The Solana Foundation has pushed back against the SEC’s classification, but the regulator has stuck to its guns so far. The classification remains in place, which could have implications for the future of SOL and Solana ETFs.
SOL ETF Approval Not Happening Anyitme Soon
The security classification is only one layer of Solana’s worries.
Experts remain skeptical about the approval of a Solana ETF under the current regulatory environment.
Nate Geraci, co-founder of the ETF Institute, stated that a Solana ETF is “not happening anytime soon under the current administration.” SEC Commissioner Hester Pierce has also expressed caution, indicating that the SEC would need further convincing before granting approval.
Besides troubles with the current administration, many issuers may not be as interested in a Solana ETF either.
BlackRock’s Head of Digital Assets, Robert Mitchnick, poured cold water on hopes of another crypto ETF, asserting that there was “very little” interest in other digital assets from their client base.
The exec highlighted that other assets barely held any market share and were “not close to being at that threshold or track record of maturity, liquidity, et cetera.”
Not All Hope is Lost
Still, despite the initial skepticism, Solana’s potential as a major cryptocurrency player remains intact. Ryan Lee, chief analyst at Bitget Research, told CCN that Solana could become the third major crypto asset behind Bitcoin and Ethereum, especially with the advent of its own ETF.
However, the security label imposed by the SEC poses significant implications for Solana’s success. That said, Solana Foundation’s efforts to engage with policymakers and regulators will be crucial in determining its trajectory for the future and the prospects of a Solana ETF.
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