The Chicago Board Options Exchange (Cboe), known for trading Bitcoin exchange-traded funds (ETFs) that it approved earlier this year, has expressed its support for the Solana ETF applications filed by asset managers VanEck and 21Shares.
On Monday, Cboe filed a request with the U.S. Securities and Exchange Commission (SEC) to list ETFs linked to Solana, a move that has caught the attention of industry experts.
Solana ETF Market Moves Closer to Approval
ETF expert Nate Geraci revealed that the Cboe has filed “19b-4” forms for both the VanEck and 21Shares Solana ETFs. Geraci explained that once the SEC recognizes these filings, the decision-making process begins and formal revisions to the application follow.
Under SEC rules, the agency has 240 days to approve or deny Cboe’s 19b-4 application to list the VanEck and 21Shares products. That would push the deadline for issuing an official statement on the applications to 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 are released to the market.
If approved, the Solana ETFs would mark a significant development in the cryptocurrency industry, following the SEC’s approval of ETFs tied to the price of Bitcoin earlier this year, which would increase the ETFs’ adoption. fifth largest cryptocurrency and further exposure for both private and institutional investors.
Expert predicts possible impact of US elections in November
Rob Marrocco, Global Head of ETP Listings at Cboe, told According to Reuters, the exchange is aiming to cater to growing investor interest in Solana, which has become one of the most actively traded cryptocurrencies after Bitcoin and Ethereum.
Bloomberg’s ETF expert Eric Balchunas also gave his opinion: explanatory that Solana ETF applications will likely have a final deadline of mid-March 2025. However, the expert stressed the importance of the upcoming elections in November.
If President Biden wins, the approval process could face challenges due to the Biden administration’s continued crackdown and skepticism on the industry, including as a result of the SEC’s enforcement actions seen in recent years.
On the other hand, if former President Trump wins with his pro-crypto stance, the mid-March deadline could result in a positive outcome for the asset managers, according to Balchuna’s analysis.
In addition to 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 told Reuters that the green light for these Ethereum ETFs is likely within a week, as regulators have already approved the Cboe’s application to list and trade these products.
At the time of writing, Solana’s native token SOL is trading at $141, up 4.5% in the past 24 hours. This comes as Solana investors become increasingly positive about the potential adoption of these index funds.
Main image of DALL-E, chart from TradingView.com