George Miller
The Cboe BZX Exchange has submitted a new application for four companies aiming to gain approval for spot ETFs. The companies involved are Bitwise, VanEck, 21Shares, and Canary Capital.
Reviving Interest in Solana ETFs
The recent applications are made under the SEC’s 19b-4 process, ensuring the filings are re-evaluated by current regulatory authorities. Following the resignation of Gary Gensler, Mark Uyeda has taken over as the acting chair of the SEC. With Uyeda in charge, the likelihood of approval has improved, but a significant challenge remains: the classification of Solana as either a commodity or a security.
VanEck and Canary Capital argue that Solana is decentralized and operates on a proof-of-consensus mechanism, similar to Bitcoin and Ether, thus qualifying it as a commodity. If regulators accept this classification, the ETF may advance to the next stage of approval.
Market Implications
Currently, there are only two spot ETFs in existence—one for Bitcoin and one for Ether. If the Solana ETF gains approval, it will become the third cryptocurrency ETF on the market, allowing investors to gain exposure to Solana without holding the asset directly.
A JPMorgan analyst has forecasted that a Solana spot ETF could draw in between $3 to $6 billion in net assets during its first year. This kind of institutional investment would strengthen SOL’s standing in the market and likely encourage broader adoption.