Solana gained over 8% after the Chicago Board Options Exchange (CBOE) filed with the US Securities and Exchange Commission (SEC) seeking approval to list Solana exchange-traded funds (ETFs).
The cryptocurrency industry, especially the Solana community, has advocated for a Solana ETF after the SEC gave the green light to spot Ether ETFs in late May.
Solana (SOL) was trading at $143 at 01:56 a.m. EST.
Cboe Files 19b-4 Forms for Solana ETFs
The CBOE Global Markets filed two 19b-4 application forms with the SEC on July 8. These forms come after 21Shares and VanEck filed for spot Solana ETFs last month, as reported by ZyCrypto.
In its filing, CBOE stated that Solana ETF products had similar traits to spot Bitcoin and Ether ETFs. One of these traits was the network’s decentralized nature, making it less prone to manipulation.
“Like Bitcoin and ETH, the Exchange believes that SOL is resistant to price manipulation and that ‘other means to prevent fraudulent and manipulative acts and practices’ exist to justify dispensing with the requisite surveillance sharing agreement,” the exchange said.
The CBOE further mentioned the scalability of the Solana blockchain. Transactions on the network happened with high speeds, and users paid relatively low fees. As a result, there was little room for manipulative tactics to happen.
The recent filing has put the SEC on a clock. The SEC guidelines require that the regulatory agency decide whether to approve a product within 240 days.
According to Bloomberg ETF analyst Eric Balchunas, the US securities regulator has a final deadline of mid-March 2025 to decide on the SOL ETFs. However, approval will depend on who wins the US Presidential elections in November.
Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most imp date is in November. If Biden wins, these likely DOA. If Trump wins, anything poss. https://t.co/ywkf6oA8Rc
— Eric Balchunas (@EricBalchunas) July 8, 2024
Balchunas opined that if former US President Donald Trump wins the election, a spot SOL ETF will likely launch.
Solana Turns Bullish
The news around Solana ETFs has riled up the community. SOL is among the top gainers in the market. Analysts call for a potential bullish breakout as the coin positions itself for bold gains.
According to trader @ali_charts on X, Solana’s chart is looking similar to its price performance in 2021. The buying activity also shows growing interest in the token, which could translate into solid gains.
In a report published last month, market maker GSR noted that if a spot SOL ETF is approved, the price of Solana could rally as much as 8.9 times.