Cboe refiling for Solana ETFs reignites SEC review process

Published 29/01/2025, 15:36
Cboe refiling for Solana ETFs reignites SEC review process

The Cboe BZX Exchange took a significant step towards the potential listing of spot Solana exchange-traded funds (ETFs) in the United States by resubmitting the required filings for four asset managers.

The filings, which were initially rejected by the Securities and Exchange Commission (SEC) last year, have been reintroduced on January 28, marking a new phase under the SEC’s more crypto-friendly acting chair, Mark Uyeda.

The resubmissions by Cboe BZX Exchange on behalf of Bitwise, VanEck, 21Shares, and Canary Capital aim to kickstart the review process once again. If approved, these ETFs would allow Solana to join Bitcoin and Ether, which already have spot ETF products available on U.S. stock exchanges. The approval of a Solana ETF would make it the third cryptocurrency to achieve this milestone.

The renewed effort comes as the SEC has shown signs of a more open stance towards cryptocurrency under the new leadership. Previous actions taken under former chair Gary Gensler, such as a rule requiring financial firms to record cryptocurrencies as liabilities, have been revoked. Additionally, the SEC has formed a crypto task force, led by Commissioner Hester Peirce, to create a framework for digital asset regulation.

Asset managers are also exploring the possibility of listing spot ETFs for other cryptocurrencies like XRP, Litecoin, and Dogecoin. Bloomberg ETF analyst Eric Balchunas commented that a Litecoin ETF might be the next to receive approval, as those applications are reportedly under active review by the SEC. JPMorgan has estimated that an approved spot Solana ETF could attract between $3 billion and $6 billion in net assets in its first year, a figure that Balchunas considers a "reasonable guess."

The timeline for these filings began with VanEck submitting the first 19b-4 application for a Solana ETF on June 27, followed by 21Shares on June 28, and Canary Capital in late October. After Donald Trump’s election win in November, Bitwise and Grayscale also filed for a spot Solana ETF, indicating a growing interest in cryptocurrency-based investment products.

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