When the Ether exchange-traded fund (ETF) did not receive the final approval in the United States, companies were already making a move for Solana ETFs. The Cboe has officially asked the Securities and Exchange Commission (SEC) to allow VanEck and 21Shares to offer Solana ETFs.
Solana ETFs on the Way?
In a pair of 19b-4 filings by the exchange yesterday (Monday), the SEC has requested approval to list Solana ETFs when approved. After the regulator acknowledges the filing, it will have a 240-day deadline to approve or reject the product decision.
The Cboe filings came a couple of weeks after VanEck submitted an S-1 filing with the SEC seeking approval for a Solana ETF. However, 21Shares' plans for a Solana ETF came out with the Cboe filing, as the S-1 form has yet to be filed.
The S-1 forms include the details of the products and are submitted by the issuer, whereas the listing exchange submits the 19b-4 forms describing the conditions and amending the listing rules for a new product. The SEC must approve both these submissions to approve the listing and trading of the new instruments.
For the Ether ETFs, the SEC has already approved the 19b-4 forms of three American stock exchanges but has yet to approve the issuers' S-1 filings. According to industry insiders, the SEC’s final decision on the Ether ETF might be made as early as this week.
Rising Demand for Crypto ETFs
“After successfully listing the first U.S. spot Bitcoin ETFs on our exchange and securing SEC approval for our rule filings to list spot Ether ETFs, we are now addressing the increasing investor interest in Solana – the third most actively traded cryptocurrency after Bitcoin and Ether,” said Rob Marrocco, global head of ETP listings at Cboe Global Markets.
Solana is a proof-of-stake blockchain similar to Ether and the Solana cryptocurrency that has become the largest, with a market cap of almost $65.5 billion. Its popularity has increased over the years due to its efficiency and the backing of many celebrities.
Although the Bitcoin ETFs are a massive hit, none of the other altcoins, including Ether, has such a market size and depth. So, it would be interesting to see how the ETFs of these altcoins would perform on the mainstream markets if they are approved.
