Cboe BZX Exchange, a well-known exchange platform, has refiled applications for four firms seeking approval for spot Solana ETFs. The firms include Bitwise, VanEck, 21Shares, and Canary Capital.
A Renewed Push for Solana ETFs
The latest filings have been submitted under the SEC’s 19b-4 process, which will make sure that the filing is freshly reviewed by the current regulatory bodies. After Gary Gensler resigned, Mark Uyeda was appointed as the acting chair for the SEC. With Uyeda, the chances of approval are high, but the key problem will still persist: determining whether Solana should be classified as a commodity or a security.
Both VanEck and Canary Capital have put their argument forward, stating that just like Bitcoin and Ether, Solana is also decentralized and follows a proof-of-consensus mechanism, which makes it a commodity and not a security. If this argument and classification is acceptable to the regulators then the ETF will proceed for the next step for approval.
Potential Market Impact
Until now, there have been only two spot ETFs available in the market, one for Bitcoin and the other one for Ether. If this Solana ETF is approved, it would be the third cryptocurrency available as an ETF in the market. With this move, the investor will gain exposure to Solana without directly holding the digital asset.
An analyst from JPMorgan has predicted that spot ETF for Solana could possibly attract $3-$6 billion in net assets within its first year. Such institutional investment would then solidify SOL’s position within the market and would lead to increased market adoption.
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