- VanEck Still Has Hopes for Solana ETF
- Cboe has removed ETF applications from its website.
- The SEC previously raised questions about the Solana ETF.
After the approval of Bitcoin and Ethereum ETFs in the United States, many traders wondered which token would be next. Most saw Solana as the most likely contender due to its institutional appeal and strong ecosystem growth. However, since then, the Solana ETF has received a series of bad news, and the possibility is becoming increasingly dim.
The latest bad news was reports of a meeting between the Securities and Exchange Commission (SEC) and a potential Solana ETF issuer. The news from that meeting was disappointing in terms of near-term potential. However, potential issuer VanEck remains hopeful about the process.
Solana ETF Faces Major Hurdle with SEC
The Solana ETF is about to face a major hurdle, with one issuer apparently withdrawing its application. On Monday, August 19, the application for the Solana ETF from VanEck and 21Shares 19b-4 was removed from the Cboe BZX Exchange website. This removal is bad news for the Solana ETF, as the stock exchange is the venue for cryptocurrency ETF trading.
According to recent reports, the filing was withdrawn following a major meeting between the SEC and Solana ETF issuers VanEck and 21Shares. In the meeting, the SEC reportedly expressed concerns about Solana’s status as an unregulated security.
Still, Matthew Siegel, VanEck’s head of digital asset research, said the company has not withdrawn its application. “Our application is still pending,” he said, explaining that the company’s S-1 registration statement is still under review.
Why VanEck is optimistic
VanEck’s optimism may be tied to his previous comments about the possibility of a change in leadership at the SEC. Sigel previously said such a change could happen after the 2024 election. It’s worth noting that current SEC Chairman Gary Gensler has laid out strict rules for ETFs, which is a major hurdle for any altcoin ETF.
This could change if the SEC chairman changes, which could happen after the election. Sigel also noted that this outcome is possible regardless of which president wins the election, as some Democrats are increasingly advocating for less stringent cryptocurrency regulation.
Whether or not the SEC approves the Solana ETF, they face other challenges. Institutions such as BlackRock and Sygnum Bank have expressed concerns about demand for the Solana ETF. For example, BlackRock’s head of digital assets explained that their client base has shown little interest in anything beyond Bitcoin and Ethereum.
On the other side
- BlackRock CEO Larry Fink said: Bitcoin SkepticHe has since changed his views. It is possible that institutions will change their views on Solana.
- Solana’s network has faced several serious outages and technical issues, raising questions about its stability and scalability.
Why this matters
The success or failure of the Solana ETF launch could have implications for public and institutional perceptions of the viability and legitimacy of altcoins as an asset class.
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