Spot Solana ETFs:
Galaxy Digital Predicts Approval
Odds By
SEC
Spot Solana ETFs: Galaxy Digital Predicts Approval Odds By SEC
by Jake Simmons
5 mins ago
in Crypto News
0
Alex Thorn, Head of Research at Galaxy Digital, recently provided an analysis
on the filings for spot Solana Exchange Traded Products (ETPs) by investment
firms VanEck and 21Shares. These filings , made with the US Securities and
Exchange Commission (SEC) on June 28, represent an aggressive move to
integrate Solana (SOL) into the structured framework of regulated financial
markets, akin to those established for Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum.
The proposal by VanEck, as outlined in their S-1 document, aims to launch a
commodity-based trust that will hold Solana directly, thus allowing the ETP to
track the asset s market price closely. Unlike some crypto ETPs, this
product will not engage in staking the held assets.
Following the announcement, the market responded positively, with SOL s
price marking an approximate 8% increase. However, the filing is still in its
early stages, lacking in detailed operational structures such as custodian,
cash custodian, and authorized participants. These aspects are typically
addressed in later amendments as the product matures toward final approval.
Why The Odds For A Spot Solana ETF Are Slim
As of the latest updates, VanEck has not yet filed the requisite 19b-4 form,
which triggers the SEC’s formal review process. According to Bloomberg’s
analyst James Seyffart, the typical review period, once initiated, extends up
to 240 days. Thus, if VanEck files soon, the final determination could be
expected around March 15, 2025. This process involves several regulatory
checkpoints and public comment periods which are standard to the approval
workflow for new financial products.
Related Reading: VanEck Executive Reveals Why The Firm Filed For A Spot Solana
ETF
The SEC currently views Solana as an unregistered security, primarily based on
ongoing litigation against major cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта exchange Coinbase. This
classification complicates the approval process for a Solana-based ETP. Given
that the Securities & Exchange Commission is currently alleging in its
case against Coinbase that Solana is an unregistered security, absent a
substantial change in posture from the SEC, it is likely that this application
will be rejected, stated Thorn.
Historically, the SEC has adopted a cautious approach towards crypto ETPs. The
process for approval generally follows a sequential path starting with
regulated futures markets, then ETPs based on those futures, and ultimately,
US-based spot ETPs. Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum ETPs have navigated this pathway with
varying degrees of resistance and success.
Related Reading: Spot Solana ETF Could Skyrocket Price 9x, Predicts Market
Maker GSR
Significantly, the SEC s prior refusal to approve Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin ETPs was based
on concerns over market size and surveillance. The turning point came with a
DC Circuit Court of Appeals ruling in August 2023 , which supported the
sufficiency of futures market surveillance. This ruling facilitated the
approval of Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin spot ETPs, which commenced in January 2024, followed by
Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum ETPs in May 2024.
The Odds Could Change Quickly
The recently passed FIT21 Act in the US House, which delineates the regulatory
boundaries between the SEC and the Commodity Futures Trading Commission
(CFTC), could play a crucial role in future cryptocurrency regulation• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта. This
legislation clarifies which digital assets should be treated as commodities
and which as securities. Such legislative clarity could pave the way for
future approvals of digital currency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта ETPs, including Solana. “That type of
clarity could also materially affect or improve the odds of ETP approval for
underlying digital currencies beyond Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ether,” Thorn noted.
Overall, the path forward for Solana ETPs is fraught with regulatory hurdles
and uncertainties. Alex Thorn of Galaxy Digital summarizes, VanEck has
a history of filing early: in the last round of Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin ETPs, they were the
fourth filer (filed one day after BlackRock), and they were the first to file
for a spot Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum ETP. That’s commendable – perhaps here they are betting on
the outcome of the election.
At press time, SOL traded at $147.54. SOL rises above the 20-week EMA, 1-week
chart | Source: SOLUSD on TradingView.com
Featured image from ByteTree, chart from TradingView.com
