The prospect of a spot Solana ETF is gaining momentum, as the SEC has acknowledged multiple filings from asset managers regarding the products.
The US Securities and Exchange Commission (SEC) has acknowledged multiple applications to list and trade a Solana exchange-traded fund (ETF). On Tuesday, the securities watchdog consented to receiving four more Solana ETF filings, further boosting the chances of approval.
Solana ETF Chances Receive Boost
The SEC acknowledged receiving 19b-4 applications for a Solana ETF from Cboe on behalf of asset managers Bitwise, VanEck, 21Shares, and Canary. Notably, this is a crucial step in the approval process, which signals that the regulator is open to considering the filing.
ETF Store president Nate Geraci confirmed the recent development, which he said was no surprise to him. He suggested that the SEC’s acknowledgment of the Solana ETFs was expected following the nod for Grayscale’s product.
For context, the Mark Uyeda-led SEC revived the charge for a Solana ETF after acknowledging Grayscale’s filing last week. The turning point for the financial product surprised many, as the process previously hit a roadblock due to asset classification issues just months ago.
Following the recent acknowledgement, the SEC has also solicited public comments, giving a 21-day window from February 11 for opinions on the filings. Notably, the final deadline for an SEC decision on the products is October 10.
All Sorted?
The acknowledgment process further inches the debut of a Solana ETF closer. After the comment window, the SEC would either approve, postpone, or deny these applications.
Following approval, the process would enter the final stage, which involves S-1 registration. Meanwhile, the recent headway signals substantial progress from what used to be a few months back.
Notwithstanding, the chances that the SEC would approve the Solana spot ETFs still hang in the balance. Recall that Bloomberg’s ETF analyst James Seyffart gave the odds a 70% rating, citing an unsorted classification issue.
For perspective, Solana is one of the many assets the SEC has viewed as a security. The securities watchdog named SOL an unregistered security in several lawsuits against exchanges like Binance and Coinbase.
Nonetheless, the industry is closely observing how the hierarchical change in the SEC would affect that view. Meanwhile, optimism swelled when the SEC and Binance filed to pause their ongoing legal battle for 60 days to allow the new crypto task force to figure out a possible resolution.
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