The prospects for the approval of spot Solana ETFs in the United States appear dim, following the recent removal of 19b-4 filings from VanEck and 21Shares by the CBOE. This development has prompted speculation that the U.S. Securities and Exchange Commission (SEC) may have already rejected the filings due to concerns regarding Solana’s “security” status.
Bloomberg ETF strategist and analyst Eric Balchunas has expressed pessimism about the chances of Solana ETF approval, stating that they have a “snowball’s chance in hell.” He has even suggested that the outcome of the 2024 U.S. Presidential Election could significantly impact the approval odds, with a Trump victory being seen as a potential catalyst for a more favorable regulatory environment.
The Key Factor: Commodity Classification
The approval of Solana ETFs hinges on the classification of Solana as a commodity. Matthew Sigel, the Head of Digital Assets Research at VanEck, maintains that Solana is a commodity, similar to Bitcoin and Ethereum. This view is supported by evolving legal perspectives that recognize the commodity-like nature of certain crypto assets in secondary markets.
Despite the setback with the CBOE filings, VanEck’s S-1 filing for a Solana ETF remains active. This suggests that the company is still pursuing the listing, albeit facing significant regulatory hurdles.
Brazil Takes the Lead
While the US market remains uncertain, Brazil has taken a more progressive stance towards Solana ETFs. The Brazilian Securities and Exchange Commission (CVM) has approved the second Solana ETF for the country in less than a month. This development highlights the growing global interest in Solana and its potential as an investment asset.
The future of Solana ETFs in the US remains uncertain, but the recent developments suggest that significant regulatory challenges lie ahead. The classification of Solana as a commodity and the potential impact of the 2024 U.S. Presidential Election will be key factors in determining whether the SEC will eventually approve spot Solana ETFs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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