The Chicago Board Options Exchange (Cboe), known for trading Bitcoin exchange-traded funds (ETFs) approved earlier this year, has thrown its support behind Solana spot ETF applications filed by asset managers VanEck and 21Shares.
On Monday, Cboe filed an application with the U.S. Securities and Exchange Commission (SEC) to list Solana-linked ETFs, a move that has drawn attention from industry experts.
Solana ETF Market Moves Closer to Approval
Nate Geraci, ETF Expert revealed that Cboe has filed Forms 19b-4 for the VanEck and 21Shares Solana ETFs. Geraci explained that once the SEC acknowledges these filings, the decision-making process begins and formal reviews of the applications follow.
Under SEC rules, the agency has 240 days to approve or reject Cboe’s 19b-4 application to list VanEck and 21Shares products. That would put the deadline for issuing a formal statement on the applications exactly as late as March 5, 2025.
VanEck and 21Shares submitted “S-1” filings with the SEC in June to launch the new products. However, the SEC must approve these investor disclosure filings before the products begin trading.
If approved, Solana ETFs would mark a significant development in the cryptocurrency industry, following the SEC’s approval of Bitcoin-linked ETFs earlier this year, which would increase adoption of the fifth largest cryptocurrency and increased exposure for retail and institutional investors.
Expert predicts potential impact of November US elections
Rob Marrocco, global head of ETP pricing at Cboe, said Reuters said the exchange is focused on responding to growing investor interest in Solana, which has become one of the most actively traded cryptocurrencies after Bitcoin and Ethereum.
Bloomberg ETF expert Eric Balchunas also weighed in: declarant that Solana ETF applications will likely have a final deadline in mid-March 2025. However, the expert stressed the importance of the upcoming November elections.
If President Biden wins, the approval process could face challenges due to continued repression from the Biden administration and skepticism toward the industry, sparked by SEC enforcement actions seen in recent years.
On the other hand, if former President Trump wins thanks to his pro-crypto stance, the mid-March deadline could lead to a positive result for asset managers, according to Balchuna’s analysis.
In addition to the Solana ETF applications, VanEck, 21Shares and other issuers including BlackRock are awaiting final approval from the SEC to launch ETFs tied to the spot price of Ethereum, the second-largest cryptocurrency.
Sources familiar with the process suggested to Reuters that the green light for these Ethereum ETFs would likely come within the next week, as regulators have already approved Cboe’s application to list and trade the products.
At the time of writing, Solana’s native token, SOL, is trading at $141, up 4.5% in the past 24 hours, as bullish sentiment surrounding the potential approval of these index funds begins to build for Solana investors.
Featured image of DALL-E, chart from TradingView.com
