Momentum Builds for Solana ETF as Reports Highlight SEC Engagement

The SEC's reported progress on Solana ETF registrations and probable leadership changes have inspired hope, indicating a potential shift in cryptocurrency investing restrictions.

Solana ETF Filings Provide New Hope

According to Fox Business journalist Eleanor Terrett, discussions regarding a Solana (SOL) spot exchange-traded fund (ETF) are progressing between SEC staff and possible issuers. According to sources, the SEC is aggressively reviewing S-1 applications, indicating that 19b-4 filings, which are required for listing the funds, may be made soon by exchanges representing issuers. The 19b-4 forms are a vital stage in the ETF clearance process, allowing the SEC to formally consider whether such products can be listed.

Vaneck, 21shares, and Canary Funds have already filed S-1s for a Solana ETF, and Bitwise has announced that it will do the same. Exchanges such as the Chicago Board Options Exchange (CBOE) would file 19b-4 documents on behalf of these companies. Once the SEC acknowledges these submissions, the agency has 240 days to approve or disapprove them. However, preceding 19b-4 submissions by Vaneck and 21shares were withdrawn in August, presumably due to hesitancy under SEC Chair Gary Gensler's leadership.

Recent SEC staff participation and a potential shift in regulatory opinion with a pro-crypto government have boosted issuers' confidence. Many now believe that a Solana ETF could be approved by 2025, indicating a shift in the agency's stance regarding cryptocurrency products.

In January, the SEC approved 11 spot bitcoin ETFs, a significant milestone in cryptocurrency investment. Following this clearance, the SEC approved spot Ethereum ETFs in July, bringing digital assets even closer to conventional finance. Recently, asset managers such as Bitwise and 21shares filed for spot XRP ETFs. However, the SEC's pending appeal of a 2023 court ruling that XRP is not security casts doubt on the clearance chances for XRP ETFs.

Nonetheless, speculation is growing that SEC Chair Gensler may retire following President-elect Donald Trump's victory, as Trump has promised to replace Gensler once he takes office. A leadership transition at the SEC could herald a shift toward more crypto-friendly regulations, thereby reducing regulatory constraints on the cryptocurrency industry.