The Cboe BZX Exchange has submitted four 19b-4 filings for asset managers Bitwise, VanEck, 21Shares, and Canary Capital to list spot Solana exchange-traded funds (ETFs). This move coincides with the announcement of Gary Gensler’s resignation as chair of the Securities and Exchange Commission (SEC), effective January 2024.
If approved, these Solana ETFs will be listed on the Chicago Board Options Exchange (Cboe)’s BZX Exchange, located in the United States. These ETFs could mark a significant step forward for Solana adoption in the institutional investment space.
What Are 19b-4 Filings?
A 19b-4 filing informs the SEC of proposed rule changes by self-regulatory organizations like stock exchanges. These filings differ from S-1 registration statements, which are more comprehensive and required for new securities offerings:
- VanEck and 21Shares submitted their S-1 filings for Solana ETFs in late June.
- Canary Capital followed with its S-1 on Oct. 30.
- Bitwise, known for its crypto-focused investment products, formed a statutory trust in Delaware on Nov. 20 and submitted its S-1 the next day.
Timing and Regulatory Shift
The filings come at a critical moment as Gary Gensler prepares to step down as SEC chair on the day of Donald Trump’s inauguration. Gensler’s resignation, originally unexpected given his term until 2026, aligns with Trump’s promise to reshape the crypto regulatory environment. Trump had previously vowed to fire Gensler on “Day 1.”
With Gensler stepping down voluntarily, the SEC is poised for a leadership shift that many expect to foster a pro-crypto regulatory landscape. This change could pave the way for faster approval of crypto ETFs, including Solana, XRP, and Litecoin products.
Solana ETFs and Security Status Debate
The regulatory status of Solana’s native token (SOL) has been a key topic in crypto circles. However, a spokesperson from 21Shares stated:
“We strongly believe that Solana’s native token, SOL, is eligible for inclusion in an ETF as a commodity. No court has found that SOL itself is a security, consistent with numerous court decisions cited in our filings.”
This clarity could drive approval momentum for Solana ETFs under a new SEC leadership. Additionally, Franklin Templeton has filed for a crypto index ETF, though the SEC has delayed its decision on that filing until early January 2025.
Solana’s Performance and ETF Potential
Although industry analysts anticipate smaller inflows into Solana ETFs compared to Bitcoin and Ether products, Solana’s remarkable performance this bull cycle cannot be overlooked. The token has surged over 2,500%, reaching $254.71, just 1.2% shy of its all-time high of $259.96, recorded in November 2021, according to CoinGecko data.
Broader Implications
The approval of spot Solana ETFs could have significant implications for institutional adoption and capital inflows into the Solana ecosystem. Additionally, a friendlier regulatory environment under new SEC leadership could accelerate ETF approvals for other cryptocurrencies like XRP and Litecoin.
As crypto markets evolve, Solana’s potential inclusion in ETFs underscores its growing stature in the blockchain ecosystem. With more clarity on regulatory frameworks and institutional interest, the groundwork for broader adoption of crypto ETFs is being laid.
Stay tuned for updates on the SEC’s decisions and the ongoing evolution of crypto-based ETFs.
