Solana (SOL) enthusiasts watching the progress of spot Solana exchange-traded funds (ETFs) can expect a final verdict by the U.S. Securities and Exchange Commission (SEC) around mid-March 2025. This news comes after the Chicago Board Options Exchange (CBOE) filed applications on July 8th to list proposed ETFs from VanEck and 21Shares.
The CBOE’s filings, designated as Form 19b-4, specifically request the SEC’s approval for the 21Shares Core Solana ETF and the VanEck Solana Trust. Notably, the CBOE compared these prospective Solana ETFs to already approved spot Bitcoin (BTC) and Ether (ETH) products, which received the SEC’s green light in January and May 2024, respectively. Citing Solana’s decentralization, high transaction throughput, and processing speed, the CBOE argued these features make the cryptocurrency resistant to manipulation that could harm investors.
The SEC’s 240-Day Clock Starts Ticking
ETF analyst Nate Geraci highlights that upon acknowledging the filings, the SEC’s “decision clock will start ticking.” As per the agency’s regulations, they have 240 days to decide whether to approve the rule changes necessary for CBOE to list these VanEck and 21Shares products.
Election Uncertainty Clouds Solana ETF Approval
However, a significant wrinkle emerges in the approval process. Senior Bloomberg ETF analyst Eric Balchunas throws a curveball, suggesting the likelihood of a Solana ETF hinges on the outcome of the upcoming US presidential election in November.
Balchunas stated in a social media post on July 9th, “Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most [important] date is in November.” He elaborated, predicting a “dead on arrival” scenario for the Solana ETFs if President Joe Biden secures re-election. Conversely, a Donald Trump victory could open doors for approval.
Potential Price Surge for SOL?
Adding another layer of intrigue, a June 27th research report by crypto market maker GSR Markets predicted a potential price surge for SOL. Their analysis suggests that the approval and launch of spot Solana ETFs in the United States could lead to a nine-fold increase in the price of SOL.
With the mid-March 2025 deadline looming and the upcoming election casting a shadow of uncertainty, the future of Solana ETFs remains to be seen. Only time will tell if these investment vehicles will see the light of day and potentially propel SOL prices to new heights.
Also Read: Solana (SOL) Flirts with 9-Month Low: Is Now The Time To Buy Before A Potential 23% Surge?
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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