In the meantime, analysts consider that approval of spot Solana ETFs within the U.S. is unlikely beneath the present administration.
Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has given the inexperienced mild for a second spot Solana exchange-traded fund (ETF).
In line with a submitting on the CVM web site, the brand new Solana ETF shall be provided by Brazil-based asset supervisor Hashdex and is at present in a “pre-operational” stage.
The transfer follows Brazil’s approval on August 8 of its first Solana ETF, overseen by QR Asset, a Brazilian asset administration agency, and managed by Vortx, a service supplier for fund operations.
In the meantime, within the U.S., efforts to launch spot SOL ETFs have hit roadblocks.
In June, Asset managers VanEck and 21Shares filed for spot Solana ETFs following the SEC’s approval of spot Ethereum ETFs.
However Solana bulls’ hopes have been dashed on August 16 when the Chicago Board Choices Alternate (CBOE) eliminated the 19b-4 filings for 2 proposed Solana ETFs from its “Pending Rule Changes” web page. Some speculated that these filings have been pulled because of considerations from the Securities and Alternate Fee (SEC) over Solana’s classification as a safety.
Bloomberg ETF analyst James Seyffart explains that when an alternate just like the CBOE information the preliminary 19b-4 utility with the SEC, the regulator additionally posts the submitting on its web site.
As an example, the CBOE filed a Solana ETF 19b-4 on July 8. Sometimes, round 14 days later, the SEC posts the 19b-4 submitting on its web site, formally beginning the clock for regulatory evaluation. This step is essential as a result of it units particular deadlines for the SEC to decide. Nonetheless, on this case, the Solana ETF submitting was by no means posted to the SEC web site.
One other Bloomberg ETF analyst, Eric Balchunas, claimed that the filings by no means appeared on the SEC’s web site. “A snowball’s chance in hell of approval unless there’s a change in leadership,” Balchunas tweeted.
He urged that the end result of the presidential election may affect the way forward for Solana ETFs within the U.S. “Yes, near-zero chance in 2024, and if Harris wins, there’s probably near-zero chance in 2025 too,” he added. “Only hope imo is if Trump wins.”
Nate Geraci, president of ETFStore, shared comparable skepticism. “Solana ETF not happening anytime soon under the current administration,” he tweeted on Aug. 17.
Geraci believes that the approval of a Solana ETF would rely on Solana being categorized as a commodity quite than a safety.
Is Solana a Commodity?
VanEck’s Head of Digital Property Analysis, Matthew Sigel, says his agency nonetheless believes Solana is a commodity — much like Bitcoin.
“This belief is informed by evolving legal perspectives, where courts and regulators have begun to recognize that certain crypto assets may function as securities in primary markets but behave more like commodities in secondary markets,” Sigel tweeted on Aug. 20.
Classifying cryptocurrencies as both securities or commodities is essential for regulatory functions. Securities embody shares, bonds, and derivatives, representing possession or creditor relationships, and are regulated by the SEC. Securities should meet the factors outlined within the Howey Take a look at, which defines a safety as an funding the place income are anticipated primarily from the efforts of others.
However, commodities embody uncooked supplies and first agricultural merchandise, of which buying and selling is regulated by the CFTC. Commodities are interchangeable and fungible, that means they are often swapped with different items of the identical kind.
Solana ETF ‘Unlikely’ within the U.S.
Ryan Lee, Chief Analyst at Bitget Analysis, advised The Defiant {that a} spot Solana ETF approval within the U.S. appears unlikely.
“The chances of a Solana ETF approval in the US are highly limited, considering the nature of the country’s ETF market,” said Lee. “It is generally considered impossible for a spot ETF to go live without a futures-related product going live first.”
He added that Solana is relatively new and lacks the infrastructure for traditional finance hedging, unlike Bitcoin and Ethereum.
“The SEC may classify SOL as a security, thus limiting its chances of getting an ETF listing,” Lee added.
A number of standards should be met for an ETF to achieve approval, together with wholesome liquidity, decentralization, resistance to cost manipulation, and regulatory classification of the underlying asset.
