Solana ETF Market Moves Closer To Approval

The Chicago Board Options Exchange (Cboe), known for trading Bitcoin exchange-traded funds (ETFs) approved earlier this year, has thrown its support

The Chicago Board Options Exchange (Cboe) has submitted an application to the US Securities and Exchange Commission (SEC) for the listing of exchange-traded funds (ETFs) tied to Solana, a move that has garnered attention from industry experts.

On Monday, the Cboe submitted a request to the SEC seeking to list ETFs tied to Solana, a development that has been closely followed by those in the cryptocurrency and financial sectors.

Solana ETF Market Moves Closer To Approval

According to ETF expert Nate Geraci, the Cboe filed “19b-4” forms for both the VanEck and 21Shares Solana ETFs. Geraci's analysis indicates that once the SEC acknowledges these filings, the decision-making process will begin, and formal application revisions will follow.

The SEC rules stipulate that the agency has 240 days to approve or deny Cboe's 19b-4 application to list the VanEck and 21Shares products. This would place the deadline for issuing an official statement on the applications on March 5, 2025.

Earlier this year, both VanEck and 21Shares submitted “S-1” filings to the SEC in June for the launch of the new products. However, before these ETFs can commence trading, the SEC must approve the investor disclosure filings.

If approved, the Solana ETFs would mark a significant development in the cryptocurrency industry, following the SEC's approval of ETFs tied to the price of Bitcoin earlier this year, which would increase adoption of the fifth-largest cryptocurrency and further exposure for both retail and institutional investors.

Expert Predicts Potential Impact Of US November Election

Rob Marrocco, the global head of ETP Listings at Cboe, told Reuters that the exchange is aiming to cater to the rising interest among investors in Solana, which has emerged as one of the most actively traded cryptocurrencies after Bitcoin and Ethereum.

Bloomberg's ETF expert Eric Balchunas also commented on the matter, stating that the Solana ETF applications will likely face a final deadline in mid-March 2025. However, the expert highlighted the crucial role that the upcoming November election may play.

If President Biden wins, the approval process could face challenges due to the Biden administration's ongoing skepticism and crackdown on the industry, which has been evident in the SEC's heightened enforcement actions over the past years.

On the other hand, if former President Trump wins with his pro-crypto stance, the mid-March deadline could result in a positive outcome for the asset managers, according to Balchuna's analysis.

In addition to Solana ETF applications, VanEck, 21Shares, and other issuers, including BlackRock, are awaiting final SEC approval to launch ETFs tied to the spot price of Ethereum, the second-largest cryptocurrency.

Sources familiar with the process suggested to Reuters that the green light for these Ethereum ETFs will likely come within the next week, as regulators have already approved the Cboe application to list and trade these products.

At the time of writing, Solana's native token SOL is trading at $141, up 4.5% in the last 24 hours, as the bullish sentiment surrounding the potential approval of these index funds begins to build for Solana investors.

The featured image is from DALL-E, and the chart is from TradingView.com

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