The SEC discussed concerns over Solana’s possible status as a security.
The Cboe BZX removed the Solana ETFs’ 19b-4 filings following the SEC-ETF issuers meeting.
VanEck assures that their plans for the Solana ETF are “still in play.”
The SEC’s worries over Solana’s (SOL) security status have put the brakes on the proposed Solana ETFs applications from VanEck and 21Shares.
Following a meeting with potential issuers, the SEC’s concerns led the Cboe BZX Exchange to hold off on submitting the necessary 19b-4 filings to the Federal Register.
🔥 Just In: #SEC had talks with #Solana #ETF issuers about its security concerns, leading to Cboe withdrawing 19b-4 filings. This puts #SolanaETF approval on hold.🚦Issuers expected setbacks given SEC’s previous stance on Solana as a #security. 👀#Crypto…
— Coin Edition: Your Crypto News Edge ️ (@CoinEdition) August 20, 2024
Asset managers like VanEck and 21Shares, who have already launched both Bitcoin (BTC) and Ether (ETH) Spot ETFs, had applied for Solana ETFs. VanEck filed the S-1 form on June 27, 2024, and 21Shares followed suit on June 28. The SEC had also confirmed receiving 19b-4 filings from these investment giants.
With this news, the community remained hopeful about the launch of Solana ETFs, particularly due to the previous launches of Bitcoin and Ether ETFs. Bloomberg’s senior ETF analyst Eric Balchunas predicted the final deadline for Solana ETFs to be mid-March 2025. He also highlighted the significant influence of the US elections in November on the ETF launch.
However, the SEC’s latest stance on the already received applications have led to the removal of 19b-4 filings from the Cboe website. Currently, the filings are not available on the website or the Federal Register. Therefore, the potential launch of Solana Spot ETFs is on hold and will only happen after the SEC approves 19b-4 forms.
The status of Solana is the key topic of concern in the ETF launch. Though the SEC retracted its request to classify SOL as a security, this does not significantly mean that the regulators have reversed their stance on the token’s status.
Some have noticed that the 19b-4 for the VanEck Solana ETF has been removed from the CBOE website. Remember that Exchanges like Nasdaq & CBOE file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). Ours remains in play. https://t.co/9rbSHciSdy
— matthew sigel, recovering CFA (@matthew_sigel) August 19, 2024
Despite the SEC’s move, VanEck’s head of digital assets research, Matthew Sigel, assured that their Solana ETF is “still in play.” Adding that the 19b-4 filing differs from the S-1 prospectus, Sigel posited that VanEck’s S-1 prospectus for the SOL ETF is still active, and the company is pursuing its plans for the ETF launch.
The post SEC’s Solana Concerns Stall ETF Launch appeared first on Coin Edition.
