- Background on Solana ETF Proposals
- Recent Developments
- The SEC’s Stance on Solana
The SEC decided not to move forward with the 19b-4 form for approving a Solana-based ETF, following discussions about Solana's potential security status.
Background on Solana ETF Proposals
In June, New York-based investment firm VanEck filed a proposal for the first Solana ETF in the U.S. The ETF aimed to offer direct exposure to SOL, with daily valuations based on prices from selected trading platforms. A day later, 21Shares filed a similar SEC proposal.
Recent Developments
Over the past weekend, the 19b-4 forms necessary for exchanges to list ETFs were no longer visible on the Cboe BZX website. This form is crucial for the approval process of ETFs as it involves exchanges proposing rule changes to list new products. The S-1 registration statements for the VanEck and 21Shares Solana ETFs also reflect this uncertainty. VanEck’s S-1 filing remains accessible on the SEC’s EDGAR system, while the filing for 21Shares appears to have been removed from search results, though the direct link still functions.
The SEC’s Stance on Solana
The SEC previously referred to Solana as a security in various court filings, which has been a significant hurdle for Solana ETFs. It remains unclear whether the SEC rejected the filings or if the asset managers decided to withdraw them. Notably, the SEC has not provided any updates on the status of these filings since their submission.
Despite the regulatory uncertainty, VanEck's plans for a Solana ETF remain active. Matthew Sigel, VanEck's head of digital assets research, noted that while exchanges like Nasdaq and Cboe handle rule change filings, the responsibility for the prospectus, or S-1, falls on issuers. According to VanEck, Solana is viewed as a commodity, similar to Bitcoin and Ethereum.
