CBOE has officially filed four 19b-4 submissions with the U.S. Securities and Exchange Commission (SEC) for the potential listing of spot-based Solana [SOL] ETFs. These submissions were put forth on behalf of investment firms Bitwise, VanEck, 21Shares, and Canary Capital.
If given the green light, these ETFs are slated to be traded on the Chicago Board Options Exchange BZX Exchange in the United States.
In a comment on the filings, Bloomberg’s ETF expert James Seyffart remarked on a different platform:
“It is now up to the SEC to make a decision.”
He also noted that the deadline for a final decision is expected to be early August, assuming the SEC formally acknowledges the filings.
Just to provide some background, a 19b-4 submission is a formal appeal made by self-governing bodies seeking to revise or set up regulations. The SEC reviews these submissions, opening them up for public feedback before granting or rejecting them.
Bitwise Enters the Competition for Solana ETFs
It is interesting to highlight that Bitwise has now joined the race for a SOL ETF, joining prior filings from VanEck and 21Shares in late June and Canary Capital in October.
On the 20th of November, Bitwise established a statutory trust in the state of Delaware for a spot-based Solana ETF. The cryptocurrency-focused investment manager cemented this move by submitting its S-1 application the next day.
Waiting Game for Solana ETFs?
While the flurry of submissions shows keen interest among investment firms, approval from the SEC is not guaranteed.
Discussing the matter, senior ETF analyst Eric Balchunas from Bloomberg questioned whether the SEC would officially acknowledge these filings in a fortnight, or advise the applicants to retract them.
Balchunas suggested that CBOE might be exploring the limits regarding a potential procedural acknowledgment, possibly due to imminent changes in leadership within the SEC.
Nonetheless, the analyst pointed out that prior to approval, lawsuits referring to Solana as a security would need to be resolved first.
This recent push is seen as more of a hopeful sign rather than an indication of a shift in the SEC’s stance.
Interestingly, the filing coincided with a statement from Fox Business reporter Eleanor Terret, who hinted at a “high probability” of approval.
However, she cautioned that past 19b-4 submissions by VanEck and 21Shares were quietly withdrawn from CBOE’s platform in August, reportedly due to lack of support from the SEC under Gary Gensler’s oversight.
Yet, Terret divulged that issuers are now pointing to increased interactions with SEC personnel and the potential for a crypto-friendly administration as grounds for renewed optimism, suggesting that,
“A Solana ETF could potentially gain approval by the year 2025.”
SOL Reaches its Peak Value
Coincidentally, the Solana ETF filings align with a significant day in the cryptocurrency market. In a recent announcement, the SEC Chair declared his resignation, effective January 20, 2025, sparking conjecture about a change in regulatory approaches.
These developments propelled Solana’s value to an all-time high of $264, as of writing, subsequently stabilizing near $262.49, reflecting a notable 8.95% surge in the past day according to CoinMarketCap.
As a consequence of this upturn, SOL’s market cap ascended to $124.62 billion, with trading volumes climbing by 59.14% to $11.06 billion.
With regulatory transformations looming ahead, the narrative surrounding Solana ETFs is set to retain its prominence. The verdict on approval, however, awaits future revelations.