The process of approving a Solana ETF has regained momentum after the US SEC acknowledged a filing from NYSE Arca on behalf of Grayscale.
A few months back, the US Securities and Exchange Commission (SEC) asked CBOE exchange to withdraw its Solana spot ETF filing on behalf of asset manager VanEck. The regulator cited classification concerns as the high-caliber cryptocurrency is one of the assets it considers a security.
However, the process took an encouraging turn on Thursday, driving the approval process back on track. The US SEC acknowledged the amended 19b-4 Grayscale Solana ETF filing from stock exchange NYSE Arca, a notable step in the approval proceedings.
A Step in the Right Direction
Bloomberg’s ETF analyst James Seyffart insisted the latest development is noteworthy considering the rapid change of events. The significant step came a few months after the SEC previously stated it would not consider the application for a similar Solana product.
Under Gary Gensler, the Wall Street securities watchdog expressed skepticism around a Solana ETF. It noted that filed applications incorrectly classified Solana as a commodity share, a plight currently under contention.
Furthermore, the SEC told applicants in December that it would no longer consider unapproved ETF filings under the current administration. As a result, it responded negatively to the decision in January.
Meanwhile, fellow ETF analyst Eric Balchunas also acknowledged the notable step in the approval proceeding. He stated that this is the first time an ETF filing tracking an asset previously classified as a security is being considered for approval, citing a market shift to new territory under the new SEC leadership.
It is worth noting that the SEC has asked for public comment on NYSE Arca’s Grayscale Solana Trust filing and has given a 21-day window before initiating the next phase. Notably, the SEC has a final deadline of October 11 to decide on the filing.
Strings of Filing Amid Easing Regulation
The recent development followed a string of ETF applications from several asset managers and 19b-4 filings from exchanges. The CBOE also recently submitted similar 19b-4 filings for XRP ETFs on behalf of Canary, 21Shares, Bitwise, and WisdomTree.
Interestingly, this flurry of applications came following the easing regulatory environment in the US. Analysts expect increased ETF approval under the new government as crypto adoption intensifies.
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