Solana ETF Saga: Will the SEC Finally Let the Crypto Party Begin? 🎉

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Ah, dear reader, gather ’round as we embark on a most curious tale of hope and despair, where the dreams of a Solana-based spot exchange-traded fund flicker back to life like a candle in a drafty room! The illustrious Cboe BZX, in a fit of optimism, has once again graced the hallowed halls of the SEC with their resubmitted applications, as if they were presenting a bouquet of wilted flowers to a rather indifferent suitor.

On the fateful day of January 29, the astute Bloomberg analyst, James Seyffart, with the air of a prophet, proclaimed that Cboe BZX had submitted a fresh batch of 19b-4 filings for spot Solana ETFs from the likes of Bitwise, VanEck, 21Shares, and Canary Capital. Oh, the audacity! They have placed their proposals once more before the stern and watchful eyes of the United States Securities and Exchange Commission, as if to say, “Look! We have returned, and we come bearing gifts!”

UPDATE: @CBOE just re-filed all of their Solana ETF 19b-4s for @vaneck_us, @CanaryFunds, @BitwiseInvest & @21Shares

— James Seyffart (@JSeyff) January 28, 2025

Now, what is this 19b-4 filing, you ask? It is but a humble request from an exchange to list a new product, in this case, a Solana ETF. It sets in motion the grand review process of the SEC, where regulators don their finest robes and assess whether the proposal meets the lofty standards of securities laws and investor protection. Should the stars align and approval be granted, Solana ETFs may soon dance upon the traditional stock exchanges like joyous revelers at a masquerade ball.

But lo! Should the SEC cast aside this proposal, fear not, for exchanges are not without recourse. They may tinker and twist their applications, like a chef adjusting a recipe, until they appease the regulatory palate. This delightful back-and-forth can stretch on for what feels like an eternity, much like the saga of Bitcoin ETFs, which took their sweet time before finally receiving the coveted nod.

For Cboe BZX, this marks their second attempt at securing a Solana ETF, following a previous rejection that left them feeling as deflated as a punctured balloon. Rumor has it that the commission had put new crypto ETF applications on hold until the grand arrival of Donald Trump in the political arena. Oh, the intrigue!

As the regulatory winds shift under the Trump administration, which has taken a rather cozy stance towards crypto, the latest filings emerge like flowers blooming in spring. With SEC Acting Chair Mark Uyeda, a man known for his industry-friendly demeanor, at the helm, the expectations for crypto ETF approvals are rising like dough in a warm oven.

Analysts, those ever-hopeful seers, believe that Solana ETFs may have a fighting chance under this new regime, though the speed of the SEC’s movements remains as unpredictable as a cat on a hot tin roof.

Meanwhile, issuers are not resting on their laurels, seeking to expand their crypto offerings with filings for spot XRP, Litecoin, and Dogecoin ETFs. Bitwise, in a moment of inspiration, has even submitted its S-1 filing for an ETF tracking Dogecoin, as if to say, “Why not throw a little doggy into the mix?”

Currently, the Polymarket bettors, those whimsical fortune-tellers, place the odds of a Solana ETF approval by July 31 at a modest 57%. Yet, the ever-astute Bloomberg ETF analyst, Eric Balchunas, has speculated that Litecoin may soon take its turn in the spotlight.

As we observe the spectacle of spot Bitcoin and Ethereum ETFs drawing in billions, it becomes clear that the appetite for crypto investment products is as robust as ever. The floodgates swung wide open when the SEC finally gave Bitcoin ETFs the green light, with Ethereum quickly following suit, like eager children racing to the candy store.

Now, with Solana and its fellow altcoins lining up for their moment of glory, the burning question remains: will the regulators embrace this new wave of crypto-backed products, or will they keep them waiting at the door, peering through the keyhole with bated breath? Only time will tell, dear reader, only time will tell! 😏

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2025-01-29 10:17