SEC Turns Down Spot Solana ETFs, Cboe Withdraws Application

As a seasoned crypto investor with over a decade of experience navigating the ever-evolving landscape of digital assets, I find myself both disheartened and intrigued by the recent turn of events regarding the Solana ETFs. The SEC’s decision to reject Cboe BZX’s 19b-4 filings for two proposed spot Solana ETFs is a familiar tale in our industry – regulatory hurdles that often feel like insurmountable roadblocks, but are ultimately surmounted through perseverance and innovative thinking.


According to a reliable source, the U.S. Securities and Exchange Commission (SEC) has denied the listing applications for two proposed Solana exchange-traded funds (ETFs) by Cboe BZX. As a result of this rejection, these proposed ETFs have been taken down from the Cboe website.

As a crypto investor, I’ve been following the recent development where the SEC has made a decision regarding Solana, and it seems this move was made after thorough discussions with the issuers. The main focus of these discussions appears to be the classification of Solana as a security, which aligns with the SEC’s position in several court cases. This suggests that they are being consistent in their approach towards similar assets.

19b-4 forms, often submitted by exchanges like Cboe on behalf of companies (issuers), serve a vital role as they kick-start the Securities and Exchange Commission’s (SEC) approval process if approved and published in the Federal Register. On the other hand, S-1 registration statements are directly filed by issuers themselves, without setting any particular deadlines.

Because the SEC declined to approve the 19b-4 forms, these forms didn’t make it into the Federal Register, thereby stopping the process from starting.

It seems that two firms, 21Shares and VanEck, are actively working towards launching Solana Exchange Traded Funds (ETFs). Notably, the filing for 21Shares, known as their S-1 form, has disappeared from the Securities and Exchange Commission’s EDGAR database, suggesting a potential delay or pause in their efforts. Conversely, VanEck’s S-1 form remains active, with their research head, Matthew Sigel, stating that the project is still being evaluated.

Even though we encountered an obstacle, there’s still room for us to refile or make adjustments to the 19b-4 forms, bolstering our case that Solana does not qualify as a security.

At the moment, we can’t provide comments about the regulatory procedure. However, it’s important to note that our goal continues to be increasing the availability of cryptocurrencies for investors in the U.S. market and worldwide, as stated by Audrey Belloff, the head of communications at 21Shares.

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2024-08-20 17:24