Hopes for a Solana-based spot exchange-traded fund (ETF) are reigniting as Cboe BZX refiled applications on January 29 for spot Solana ETFs from asset managers including Bitwise, VanEck, 21Shares, and Canary Capital. These filings put the proposals back in front of the U.S. Securities and Exchange Commission (SEC) for review.
A 19b-4 filing is a formal request by an exchange to list a new product, in this case, a Solana ETF. This triggers the SEC’s review process, during which regulators assess whether the proposal complies with securities laws and investor protection standards. Approval would allow Solana ETFs to trade on traditional stock exchanges.
If the SEC rejects the application, exchanges are not out of options. They can adjust and resubmit their filings to address regulatory concerns, a process that could involve several rounds, similar to the approval saga seen with Bitcoin ETFs.
This marks Cboe BZX’s second attempt to get a Solana ETF approved, following a rejection late last year. At that time, insiders suggested that the SEC had paused new crypto ETF applications until after Donald Trump officially assumed office.
A More Crypto-Friendly SEC?
The latest filings come as the regulatory landscape shifts under the Trump administration, which has signaled a more crypto-friendly stance. With SEC Acting Chair Mark Uyeda at the helm, a figure known for his industry-friendly approach, market observers are growing more optimistic about the approval of crypto-backed products like Solana ETFs.
While analysts believe the new leadership increases the likelihood of approval, the timeline remains uncertain. It’s unclear how quickly the SEC will act on the pending applications.
Other crypto products are also on the table. In addition to Solana ETFs, issuers have filed applications for spot ETFs tracking XRP, Litecoin, and Dogecoin. For instance, Bitwise recently submitted an S-1 filing for a Dogecoin ETF.
What’s Next for Solana ETFs?
Polymarket, a prediction market platform, currently places the odds of Solana ETF approval by July 31 at 57%. Bloomberg’s Eric Balchunas has speculated that Litecoin may be the next cryptocurrency to gain ETF approval after Solana.
The launch of spot Bitcoin and Ethereum ETFs has proven to be a success, attracting billions in investments and confirming the demand for crypto-based investment products. The approval of these ETFs paved the way for Ethereum, and now other altcoins like Solana are hoping for their turn.
As the SEC continues to evaluate these products, the crypto community is watching closely to see whether more cryptocurrencies will gain the approval needed to enter the mainstream investment market.
