Highlights:
- Cboe has submitted the 19b-4 filings for VanEck and 21Shares’ spot Solana ETFs.
- Balchunas predicts the launch of the Solana ETF by mid-March 2025, which could be influenced by the November election.
- Solana surges 6% as Cboe applies for Solana ETFs; SOL trades at $141, eyeing a major breakout.
On July 8, the Chicago Board Options Exchange (Cboe) filed with the US Securities and Exchange Commission to list spot exchange-traded funds (ETFs) tied to the cryptocurrency Solana (SOL). Cboe filed two Form 19b-4 applications, one for the VanEck Solana Trust and another for the 21Shares Core Solana ETF. They are the first proposed ETF products linked to the price of SOL, the fifth-largest cryptocurrency.
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Last month, asset management firms VanEck and 21Shares applied to the SEC to launch new products. However, for the products to start trading, the US SEC must approve both the S-1 and 19b-4 filings.
The Cboe compared the upcoming Solana funds to Bitcoin and Ether ETFs approved by the SEC earlier this year. It highlighted Solana’s decentralization, speed, and throughput as factors making it less susceptible to manipulation that could harm investors.
Global head of ETP listings at Cboe Global Markets, Rob Marrocco, said in a statement:
“After successfully listing the first U.S. spot Bitcoin ETFs on our exchange and securing SEC approval for our rule filings to list spot Ether ETFs, we are now addressing the increasing investor interest in Solana – the third most actively traded cryptocurrency after Bitcoin and Ether.”
SEC Has Deadline Until Mid-March 2025 for Solana ETF Decision
ETF analyst Nate Geraci mentioned that once the SEC acknowledges the filings, the “decision clock will start ticking.” According to SEC’s rules, the agency will have 240 days to decide whether to approve or deny Cboe’s “19b-4” applications to list the products from 21Shares and VanEck.
Bloomberg analyst Eric Balchunas predicted that spot Solana ETFs could arrive around mid-March 2025. He also suggested that the outcome of the US elections could significantly influence the approval of Solana ETFs. Balchunas said if Biden wins the election, the Solana ETFs will likely face significant obstacles, whereas if Trump wins, anything could happen.
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
Solana Jumps 6% As Cboe Files Applications For Solana ETFs
SOL price surged today following Cboe Global Markets’ filing request with the US SEC. As of the time of writing, it was trading at $141, marking a 6.7% increase in the past 24 hours. Its market cap also surged 7% to reach $65.42 billion.
In a June 27 research report, crypto market maker GSR Markets forecasted that the approval and launch of Solana ETFs in the United States could potentially increase the price of SOL by nine times.
SOL Price Eyeing Major Breakout
Solana’s price faced market turbulence last week but quickly rebounded to $140, with potential for further gains ahead. According to crypto analyst Ali Martinez, Solana’s current price movement resembles its trajectory in 2021. Martinez noted that the SOL Relative Strength Index (RSI) is currently at the level seen before the bullish breakout in 2021. This suggests a significant potential rally in SOL’s price could be on the horizon.
#Solana seems to be mirroring the same price pattern we saw in 2021! Even the $SOL RSI is at the same level it was back then before the big bullish breakout. pic.twitter.com/5QQKjUlZcx
— Ali (@ali_charts) July 8, 2024
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