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The U.S. Securities and Exchange Commission (SEC) is moving forward in its talks with fund managers concerning Solana (SOL) spot exchange-traded funds (ETFs). According to report, the SEC started reviewing S-1 filings from firms like VanEck, 21Shares, Canary Capital, and Bitwise. These filings are the initial form of approval for Solana ETFs associated with its performance.
After an S-1 filing analysis, the next step is 19b-4 filings to access ETFs into acting markets like the CBOE. Upon filing these 19b-4 forms, the SEC will have 240 days to approve or disapprove the proposals. While some of the first filings of Solana ETFs were withdrawn in August, the hope has arisen following interactions between the SEC staff and the industry participants.
The potential for approval of Solana ETFs has gained further traction following discussions about regulatory shifts under the incoming administration. The policies of President-elect Donald Trump are expected to be more friendly to cryptocurrencies. Experts believe that the resignation of Gary Gensler as the head of the SEC at the start of 2025 will mark a potential change in the agency’s approach to cryptocurrency products.
Several complaints exist regarding Gensler's strict compliance with necessary regulations. His resignation comes when there is more demand for such investments, and many believe it will pressure the SEC to approve more such funds. The approval of spot Bitcoin ETFs in January and Ethereum ETFs in July has boosted expectations for the Solana ETF and similar products.
The increased demand for Solana ETFs also coincides with a sharp increase in the price of SOL – Solana’s native token. As at the time of writing this article, SOL has gone up to an all-time high of $261 having risen by 25% in the last week. This has made Solana the fourth biggest cryptocurrency in terms of market capitalization, which makes it even more attractive to institutional investors.
Various asset managers, such as Bitwise and 21Shares, are looking to get involved in Solana ETF to support market performance numbers. Cryptocurrencies other than Bitcoin, such as the XRP ETFs and Hedera’s HBAR, are still up for approval, indicating more acceptance of cryptocurrencies in the global realms of finance.
