- VanEck remains hopeful of Solana ETFs.
- Cboe removed ETF filings from its website.
- Earlier, the SEC questioned Solana ETFs.
After Bitcoin and Ethereum ETF approvals in the US, many traders wondered which token would be next. Most saw Solana as the top contender due to its institutional appeal and strong ecosystem growth. However, since then, Solana ETFs have gotten a string of bad news, with chances looking increasingly dim.
The latest bad news was a reported meeting between the Securities and Exchange Commission (SEC) and potential Solana ETF issuers. The news from this meeting was nothing short of disappointing for its near-term chances. However, potential issuer VanEck remains hopeful in the process.
Solana ETFs See Major Hurdles With SEC
Solana ETFs are facing major hurdles soon, prompting one issuer to apparently withdraw their application. On Monday, August 19, VanEck and 21Shares 19b-4 filings for their Solana ETFs were removed from the Cboe BZX Exchange website. The equities exchange is the venue for crypto ETF trading, meaning that this removal is bad news for Solana ETFs.
According to recent reports, the filings were dropped after a key meeting between the SEC and hopeful Solana ETF issuers VanEck and 21Shares. In the meetings, the SEC reportedly expressed concerns about Solana’s status as an unregulated security.
Still, VanEck’s head of digital assets research, Matthew Sigel, stated that the firm has not withdrawn its application. “Ours remains in play,” he stated, explaining the firm’s S-1 registration statement is still in review.
Why VanEck is Optimistic
VanEck optimism may be related to his earlier remarks about the potential for a leadership change in the SEC. Earlier, Sigel remarked that such a change could happen after the 2024 elections. Notably, current SEC chair Gary Gensler has set stringent rules for ETFs, a major hurdle for all altcoin ETFs.
This could change if the SEC chair changes, which could happen after the election. Sigel also noted that this outcome is possible independently of which president wins the election. This is because there is a growing segment of Democrats that advocate for less stringent crypto regulation.
Whether or not the SEC approves Solana ETFs, they face other issues. Institutions like BlackRock and Sygnum Bank have expressed reservations about the demand for a Solana ETF. For instance, BlackRock’s head of digital assets explained that their client base shows little interest beyond Bitcoin and Ethereum.
On the Flipside
- BlackRock CEO Larry Fink used to be a Bitcoin skeptic, a view he has since changed. It is possible that institutions change their view on Solana as well.
- Solana’s network has faced several high-profile outages and technical challenges, raising questions about its reliability and scalability.
Why This Matters
Success or failure in launching a Solana ETF could influence public and institutional perceptions of the viability and legitimacy of altcoins as an asset class.
Read more about a Solana ETF approval in Brazil:
Why a Solana ETF Could Be Closer Than You Think
Read more about Solana’s integration with PayPal’s stablecoin:
Solana Integration With PayPal PYUSD on Bybit Marks Key Step in Blockchain Interoperability
