While it is still too early to conclude, spot Solana exchange-traded funds (ETFs) may not see the light of day in the United States anytime soon. This speculation comes after the Securities and Exchange Commission (SEC) rejected the Chicago Board Options Exchange’s 19b-4 filings for SOL ETFs submitted by VanEck and 21Shares.

SEC Turns Down Cboe’s Request

On July 9, national securities exchange Cboe submitted a pair of 19b-4 filings with the U.S. SEC seeking to list VanEck’s and 21Shares’ proposed Solana (SOL) ETFs and asking the SEC to make a final decision by March. The offerings aim to provide traditional investors with direct exposure to SOL.

According to an anonymous source privy to the matter, the SEC rejected Cboe’s filings for the two ETFs. As a result, they were removed from the Cboe website, sparking speculation about the status of the proposed investment funds.

For those unaware, exchanges like Nasdaq & Cboe file rule changes (19b-4) to list new ETFs on behalf of prospective issuers. If put in the Federal Register, the clock starts on the SEC’s approval process. Issuers like VanEck and 21Shares are responsible for the prospectus (S-1).

But with the SEC denying the 19b-4 forms, they never reached the Federal Register, and the process toward a potential greenlight or rejection did not commence.

Sources claimed the SEC’s rejection followed discussions with would-be issuers about the regulator’s concerns over SOL’s potential status as an unregistered security.

SOL ETF “Still In Play”

It’s worth noting that VanEck thinks SOL is a commodity, similar to Bitcoin (BTC) and Ethereum (ETH).

“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,” VanEck’s head of digital assets research Matthew Sigel explained.

“We remain committed to advocating this position alongside our exchange partners to the appropriate regulators,” he added.

Notably, VanEck’s S-1 form for its SOL product is still visible on the SEC’s filing system EDGAR, and Sigel clarified that it remains in play.

Meanwhile, the first Solana-based exchange-traded fund is on track to go live in Brazil. Roughly two weeks ago, the Brazilian Securities and Exchange Commission (CVM) approved the investment vehicle. As ZyCrypto reported, the SOL ETF is in a pre-operational phase, so it has yet to be approved by the Brazilian stock exchange, B3. Even so, Brazil’s move has sparked hope among crypto community members of a similar trajectory in the U.S.