The Securities and Trade Fee is now weighing a number of Solana (SOL) ETF functions, with observers eyeing the transfer as a departure from how the regulator had beforehand thought-about such merchandise.
Canary Capital’s Solana Trust joined a rising checklist of proposed ETFs on Tuesday in search of public remark to convey SOL investing to Wall Road, alongside comparable filings from VanEck, 21Shares, and Bitwise.
The event follows Grayscale’s Solana ETF utility final week, with the SEC’s acknowledgment, positioning it as a possible bellwether for a broader group of proposals.
“The SEC has finished a giant about-turn on the Solana ETF—from refusing to even entertain such an funding product to acknowledging Grayscale’s amended SOL ETF utility,” Chris Chung, founding father of Solana swap platform Titan, advised Decrypt in an emailed assertion.
The process triggers a 21-day evaluate interval for the SEC to approve, deny, or lengthen its resolution deadline.
“There is a good likelihood this can find yourself being a historic day for Solana in the identical manner January 10, 2024, was a historic day for Bitcoin,” Chung advised Decrypt, referring to the regulator’s approval for a Bitcoin-based ETF final yr.
On the highway
Observers anticipate a number of crypto ETFs past Ethereum and Bitcoin to realize approval inside the yr, although the timing stays unsure.
An ETF approval “will place Solana because the blockchain for mass adoption,” Chung mentioned.
Nevertheless, earlier feedback from Canary Capital CEO Steven McClurg reveal a extra nuanced technique behind his firm’s ETF pursuits.
“It is like, ‘Hey, properly, if we’re doing these different ones, we’d as properly soar in and get in on the motion if one thing occurs,'” McClurg advised Decrypt in a separate interview, talking about his firm’s SOL ETF submitting.
McClurg’s agency has deliberately focused tokens that it considers to have clear utility, in search of funds primarily based on Solana, XRP, Litecoin, and HBAR, whereas intentionally steering away from widespread cryptos akin to Dogecoin.
The push for different crypto ETFs after Bitcoin and Ethereum has gained momentum below the brand new U.S. administration, with the SEC launching a devoted crypto task force headed by Commissioner Hester Peirce.
“Simply as fashionable know-how doesn’t get rid of the dangers of taking to the open highway, this new journey towards regulatory readability nonetheless presents risks,” wrote Commissioner Peirce in a statement, reflecting on how know-how may make crypto a “extra pleasurable and fewer dangerous endeavor.”
Edited by Sebastian Sinclair
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