CBOE Seeks SEC Approval for Solana Spot ETFs, Decision By Mid-March

CBOE Global Markets, a prominent exchange operator, submitted a “19b-4” application to the U.S. Securities and Exchange Commission (SEC) to list exchange-traded funds (ETFs) tied to Solana. 

Under SEC regulations, the agency has 240 days, until March 2025, to make a decision on this request. The proposed ETFs are from VanEck and digital asset manager 21Shares.

In June, both 21Shares and VanEck applied to the SEC to launch these new products. To proceed with trading, the SEC must approve both the S-1 and 19b-4 filings. The S-1 form details the products and is submitted by the issuer, while the 19b-4 form, submitted by the listing exchange, outlines the conditions and amends listing rules for the new product.

Current Market Landscape

CBOE is no stranger to the ETF market, currently listing six of the ten existing spot Bitcoin ETFs, including those from Fidelity, Ark/21Shares, and VanEck. It is also positioned to list five spot Ether ETFs, pending approval.

The filing for Solana ETFs follows a similar trajectory to the recent spot Ethereum ETFs. Analysts anticipate the SEC to approve these Ether ETFs soon, with many issuers recently filing amended S-1 forms. 

Analyst Expectations and Market Impact

Bloomberg analyst Eric Balchunas expects the spot Solana ETFs to be approved by mid-March 2025. However, he notes that the outcome of the U.S. elections could influence the SEC's decision. Political changes could impact regulatory stances on cryptocurrency-related financial products.

If approved, the Solana ETFs could attract significant interest from institutional and retail investors. These ETFs would offer a regulated and convenient way to gain exposure to Solana without directly purchasing the cryptocurrency. This development could enhance liquidity and market stability for Solana.

Solana's price has experienced volatility over the past week but has rebounded to $140. SOL is trading at $141.22, up $6.5% in 24 hours at the time of writing.