Solana ETF Filings Proliferate as SEC readies for change in leadership competition
The race to unleash spot Solana (SOL) ETFs in the United States is heating up as various firms submitted different regulatory applications on Nov. 21. The filings came on the same day a bombshell was dropped: SEC Chair Gary Gensler will step down, effective January 2024.
Asset Managers Persist in Race for Spot Solana ETFs
Bitwise, VanEck, 21Shares and Canary Capital all filed S-1 registration statements and 19b-4 filings for Solana ETFs. The 19b-4 filings were all made by the Cboe BZX Exchange to notify the SEC of proposed rule changes required for each listing.
Bitwise went the extra mile and registered a statutory trust in Delaware for a SOL ETF on Nov. 20. Asset managers are taking these steps in hopes of catching a shift in the regulatory winds.
Gensler’s Resignation Spurs Optimism
The impending resignation of Gary Gensler, welcomed by many in the crypto industry, brings an end to a tenure often criticized as anti-crypto. He announced his move as President-elect Donald Trump, who promised to fire Gensler on his first day, approaches the date of his takeover.
The announcement has stoked speculation of friendlier regulatory waters under new SEC leadership. A spokesperson for 21Shares expressed confidence in Solana’s eligibility for ETF inclusion:
“We strongly believe Solana’s native token, SOL, qualifies as a commodity and is eligible for inclusion in an ETF.”
Broader Implications for Crypto ETFs
The filings for the SOL ETFs add to a growing number of pending applications for spot crypto ETFs including XRP, and Litecoin. Franklin Templeton has applied for a crypto index ETF, though the SEC delayed a decision on it until early 2025.
While Solana ETF inflows may initially be modest compared to Bitcoin and Ether ETFs, Solana’s performance this bull cycle has been impressive. The token’s value has surged over 2,500%, nearing its all-time high of $259.96 from November 2021.
A Turning Point for Crypto Regulation
Gensler’s exit might pave the way for a more crypto-friendly regulatory regime. The approval of SOL ETFs, if given, would further cement the token’s position as one of the frontrunners in the evolving crypto landscape. The filings reflect an increase in confidence in Solana’s potential and the greater adoption of blockchain-based assets.
