Bitrabo Editorial
The Chicago Board Options Exchange (Cboe), well-known for endorsing Bitcoin exchange-traded funds (ETFs) earlier this year, has expressed its backing for the Solana ETF applications submitted by asset managers VanEck and 21Shares.
The Cboe made a formal request to the US Securities and Exchange Commission (SEC) on Monday to list ETFs linked to Solana, capturing the interest of industry observers.
Progress Toward Approval of Solana ETF Market
ETF specialist Nate Geraci disclosed that the Cboe filed “19b-4” forms for both VanEck and 21Shares Solana ETFs. Geraci outlined that after the SEC acknowledges these filings, the decision-making process initiates, followed by formal application revisions.
Per SEC regulations, the agency has 240 days to approve or reject Cboe’s 19b-4 application for listing the VanEck and 21Shares products. This sets the deadline for an official statement on the applications to March 5, 2025.
In June, VanEck and 21Shares submitted “S-1” filings to the SEC to introduce the new products. Nonetheless, the SEC must first approve these disclosure filings for investors before the products can start trading.
If greenlit, the Solana ETFs would represent a major milestone in the cryptocurrency sector, following the SEC’s approval of Bitcoin-linked ETFs earlier this year, ultimately boosting the adoption of the fifth-largest cryptocurrency and providing increased exposure for both individual and institutional investors.
Anticipated Impact of US November Election by Experts
Rob Marrocco, Cboe’s global head of ETP Listings, told Reuters that the exchange is focusing on meeting the growing investor interest in Solana, which has gained prominence as one of the most actively traded cryptocurrencies after Bitcoin and Ethereum.
ETF expert Eric Balchunas from Bloomberg suggested that the Solana ETF applications are likely to face a final deadline in mid-March 2025. However, he highlighted the significant impact the upcoming November election could have.
Should President Biden secure victory, the approval process might encounter obstacles due to the administration’s scrutiny and enforcement actions toward the industry carried out by the SEC over recent years.
Conversely, a win by former President Trump with his pro-crypto stance could lead to a favorable outcome for the asset managers by the mid-March deadline, as analyzed by Balchunas.
Alongside the Solana ETF applications, VanEck, 21Shares, and other issuers, including BlackRock, are awaiting the final nod from the SEC to launch ETFs linked to the spot price of Ethereum, the second-largest cryptocurrency.
Sources familiar with the process indicated to Reuters that approval for these Ethereum ETFs is likely to arrive within the next week, with regulators already granting permission for the Cboe to list and trade these products.
Currently, Solana’s native token SOL is trading at $141, reflecting a 4.5% increase in the last 24 hours, as optimism grows among Solana investors anticipating the potential approval of these index funds.
Featured image from DALL-E, chart from TradingView.com