Highlights:
- VanEck’s Matthew Sigel confirms Solana ETF plans remain active despite filing removal.
- The removal of the 19b-4 filing raises concerns about the ETF’s future.
- Sigel argues Solana should be classified as a commodity like Bitcoin and Ethereum.
In an August 19 tweet, Matthew Sigel, VanEck’s head of digital assets research, reassured investors that plans for a Solana ETF are “still in play,” even though Cboe has removed the 19b-4 regulatory filing for the ETF from its website. The sudden removal of these filings has sparked concerns in the crypto community, with many speculating that the US Securities and Exchange Commission (SEC) may have signaled a reluctance to approve the proposed Solana ETFs.
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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
21Shares and VanEck SOL ETF 19b-4 Filings Removed From CBOE
The 19b-4 filing, submitted by Cboe on July 9, is crucial for obtaining SEC approval to list VanEck and 21Shares Solana ETFs. This filing is necessary for exchanges like Cboe and Nasdaq to introduce new ETFs. Its removal from Cboe’s site on August 9 sparked speculation about whether the ETF proposal was being withdrawn.
However, Sigel clarified that the 19b-4 filing differs from the S-1 prospectus, which ETF issuers file. He confirmed that VanEck’s S-1 prospectus for the Solana ETF remains active, indicating the company is still pursuing its plans.
In an X post, Summers, co-founder of intelligence network Synoptic, stated:
“Forms 19b-4 for VanEck and 21Shares Solana ETFs appear to have been removed from the CBOE website. My question is, does it mean that 19b-4s were withdrawn?”
VanEck Executive Says Solana Is a Commodity
The SEC discussed its concerns about whether Solana should be classified as a security with Solana ETF issuers. Following the discussions, the SEC and Cboe agreed not to file the 19b-4 forms with the Federal Register. This would have triggered the approval process and pressured the SEC on decisions about the Solana ETFs.
Sigel stated that Solana is considered a commodity like Bitcoin and Ethereum, based on legal perspectives. He emphasized that courts might classify assets as both securities and commodities, depending on market conditions.
Sigel stated:
“For the record, VanEck believes SOL is a commodity, much like BTC and 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.”
Solana ETF Approval Faces Uncertainty
Some industry insiders believe asset managers might be withdrawing their applications to resolve regulatory concerns before resubmitting. Meanwhile, Nate Geraci, president of the ETF Store, suggested on X that the withdrawal shows SEC Chair Gary Gensler’s reluctance to approve a SOL ETF during his tenure. The Solana community, hopeful for ETF approval to boost mainstream adoption, now faces uncertainty. If the SEC denies the ETFs, it could be a major setback for integrating Solana into traditional finance.
Yes…
Solana ETF not happening anytime soon under current administration. https://t.co/z18gRIFzEr pic.twitter.com/zSL5PMjDC6
— Nate Geraci (@NateGeraci) August 17, 2024
Scott Johnson, a finance lawyer, speculated that the SEC Chair may have told Cboe that the Solana ETF was “dead on arrival” under his watch. Johnson also suggested that Gensler might have indicated the applications were improperly filed, possibly because he does not view Solana as a commodity.
Instead of running through the full 19b-4 process, I'm assuming Gary notified CBOE that these SOL apps were improperly filed as Commodity-Based Trust Shares (because he thinks SOL isn't a commodity), which obviates the need for the SEC to provide a formal written disapproval… pic.twitter.com/zk0BybHalA
— Scott Johnsson (@SGJohnsson) August 17, 2024
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