The U.S. Securities and Exchange Commission (SEC) staff has reportedly begun active discussions with prospective issuers of a Solana spot exchange-traded fund (ETF), marking a significant shift in regulatory engagement. According to Fox Business journalist Eleanor Terrett, sources indicate that the SEC is now reviewing S-1 registration statements and that exchanges representing issuers may soon submit the critical 19b-4 filings, which trigger the formal review process.
SEC Engages with Filers
Asset management firms including VanEck, 21Shares, and Canary Funds have already filed S-1 applications for a Solana ETF, with Bitwise announcing plans to join them. The Chicago Board Options Exchange (CBOE) is expected to file 19b-4 forms on behalf of these issuers. Once acknowledged by the SEC, the agency has 240 days to approve or deny the proposal. Notably, previous 19b-4 filings by VanEck and 21Shares were withdrawn in August, a move widely attributed to the cautious stance under SEC Chair Gary Gensler.
Industry Optimism Rises
The recent engagement from SEC staff, combined with the prospect of a pro-crypto administration under President-elect Donald Trump, has bolstered optimism among filers. Many now see a realistic chance of a Solana ETF receiving approval by 2025. In January, the SEC approved 11 spot Bitcoin ETFs, followed by greenlighting Ethereum ETFs in July, setting precedents for digital asset products. Meanwhile, Bitwise and 21Shares have also filed for spot XRP ETFs, though the SEC's ongoing appeal of a 2023 ruling that XRP is not a security adds uncertainty to that process.
Regulatory Shift on the Horizon
Political momentum is adding fuel to the fire. Trump has pledged to replace Gensler upon taking office, and speculation is mounting that the SEC chair may resign early in 2025. A leadership change could usher in more crypto-friendly policies, potentially accelerating the approval of Solana and other digital asset ETFs. The price of Solana (SOL) has surged from around $100 at the start of the year to approximately $240, driven in part by ETF hopes. As the SEC opens the door to dialogue, the cryptocurrency industry watches closely for what could be a transformative moment for investment products.