VanEck, 21Shares Solana ETFs Hit Roadblock as CBOE Pulls Filings

After BTC, ETH ETFs were approved for trading in the United States, multiple fund providers set their sights on Solana. Solana ETFs could be the next major target as filing proposals to offer similar crypto ETFs.

This optimism was fueled by the recent approval of a Solana ETF in Brazil. This led experts to predict that a U.S. counterpart was imminent. However, recent developments have cast a significant shadow over these expectations.

Solana ETF Expectations

In a surprising turn of events, the Chicago Board Options Exchange (CBOE) has withdrawn the Solana ETF filings from asset managers VanEck and 21Shares.

Forms 19b-4 for VanEck and 21Shares Solana ETFs appear to have been removed from the CBOE website.

Documents SR-CboeBZX-2024-066 & SR-CboeBZX-2024-067 aren’t accessible anymore via direct link, and are no longer visible in BZX Pending Rule Changes.

Another interesting thing is… pic.twitter.com/t81kVGJ3uH

— Summers (@SummersThings) August 16, 2024

The filings, submitted in June 2024, were intended to offer direct exposure to Solana (SOL) through regulated financial products.

VanEck’s filing was particularly notable as it represented the first attempt by a major U.S. firm to introduce a spot Solana ETF. The ETF aimed to track Solana’s value using pricing data from selected trading platforms via MarketVector.

The removal of these filings from the CBOE’s website has created uncertainty about the immediate future of Solana ETFs in the U.S.

The CBOE has not provided specific reasons for the withdrawal, and the U.S. Securities and Exchange Commission (SEC) has yet to acknowledge or comment on the submissions. This lack of clarity has heightened concerns about the regulatory path for these products.

The withdrawal has sparked a wave of skepticism and concern within the financial community. Industry experts, including James Seyffart, a senior ETF analyst at Bloomberg, had previously indicated that approval for these ETFs might be delayed until 2025.

Yes…

Solana ETF not happening anytime soon under current administration. https://t.co/z18gRIFzEr pic.twitter.com/zSL5PMjDC6

— Nate Geraci (@NateGeraci) August 17, 2024

The CBOE’s recent action aligns with these cautious predictions. It is raising doubts about the feasibility of launching a Solana ETF in the near term. ETFStore President Nate Geraci further underscored the regulatory challenges. He remarked, “Gary says SOL ETF is DOA under his watch,” referring to SEC Chair Gary Gensler.

Brazil’s Progress in Solana ETF

Amid the uncertainty in the U.S., Brazil has made progress by approving its first Solana ETF. This development highlights a contrasting approach to cryptocurrency regulation between the U.S. and international markets.

Brazil’s approval signifies growing acceptance of digital assets and provides investors in the region with a new investment avenue.

With the SEC remaining silent and regulatory hurdles continuing to challenge the approval process, the timeline for SOL ETFs in the U.S. remains uncertain. Investors and industry observers will be closely monitoring developments both domestically and internationally to gauge the potential for Solana ETFs and their impact on the broader digital asset market.

As the situation evolves, the contrast between the U.S. regulatory challenges and the progress seen in countries like Brazil will play a crucial role in shaping the global narrative around cryptocurrency ETFs and their integration into mainstream financial markets.

SOL Market Performance

SOL has seen a significant decline, falling over 9.9% in the past week to a low of $139.48 as of August 16. Over the past 30 days, SOL has experienced a 14% drop, with a 90-day decrease of 18%.

Despite the decline in price and the heightened trading activity, SOL’s market capitalization has decreased to $64.52 billion. Nevertheless, it remains the fifth-largest cryptocurrency according to CoinMarketCap data.

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