The removal of VanEck and 21Shares’ 19b-4 filings for their Solana ETFs from the CBOE website has sparked speculation about a possible withdrawal. However, Matthew Sigel, the head of digital assets research at VanEck, assured followers on X that the ETF application remains active. He emphasized that “Ours remains in play,” confirming the filing’s ongoing status.
CBOE Filing Procedures and SEC Deadlines
Exchanges like Nasdaq and CBOE file rule changes, known as 19b-4, to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). The U.S. Securities and Exchange Commission (SEC) has a deadline of March 2025 to approve or reject these applications. 21Shares has not provided any comments on the status of its Solana ETF filing.
Optimism and Pessimism Surrounding Solana ETFs
The SEC’s approval of spot Bitcoin and Ethereum ETFs earlier this year has fueled speculation that Solana might be next. Despite the optimism, many experts remain cautious about the likelihood of approval.
Understanding Solana: A Growing Blockchain Platform
What is Solana?
Solana is a blockchain platform designed for decentralized applications (dApps) and cryptocurrency transactions. It is known for its speed and scalability, processing over 65,000 transactions per second with minimal fees. This is possible due to its combination of the Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms. Solana’s features make it a strong competitor to Ethereum.
The prospect of a U.S.-approved Solana ETF has increased investor optimism. Such an ETF would allow investors to gain exposure to SOL without directly purchasing the cryptocurrency. This could potentially drive further institutional interest and adoption.
Network Instability
Despite its potential, Solana’s history of downtime could affect the approval of spot ETFs. According to Joel Franks from CryptoNews, the Solana network experienced a major outage in February. It has also suffered several outages since its launch. These disruptions have often led to price declines, raising concerns about Solana’s stability and maturity.
Solana Price Action
As of August 19, 2024, Solana’s price is $147.82. It has decreased significantly from its all-time high of $259.52 on November 6, 2021. Ryan Lee, chief analyst at Bitget Research, believes that SOL could become the third major crypto asset after Bitcoin (BTC) and Ethereum (ETH), especially if it secures its own ETF.
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