The SEC is yet to acknowledge the Solana ETF filings from both VanEck and 21Shares. ETF analyst Nate Geraci highlighted that when these acknowledgments finally come, the decision clock will begin to tick.
Senior Bloomberg ETF Analyst Eric Balchunas believes that the United States Securities and Exchange Commission (SEC) would have made its decision on spot Solana ETFs by mid-March 2025. At the same time, he stated that the possibility of approval is highly dependent on who wins the upcoming November presidential elections.
“Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most [important] date is in November,” Balchunas wrote in his X post.
Spot Solana ETF Decision Might Be Political
The two main contestants in the elections are Joe Biden from the Democratic party and Donald Trump, the Republican nominee.
As the current president of the United States, Biden’s administration has been committed to cracking down on the crypto ecosystem in the region. This is evident in how many enforcement actions SEC Chair Gary Gensler and his team pushed on crypto exchanges. The biggest recipients of these enforcement actions include Binance, Coinbase Global Inc (NASDAQ: COIN), and Kraken.
Many crypto enthusiasts are clamoring for Trump to be president because of his obvious support for cryptocurrencies and blockchain companies. In his campaign, he has not failed to talk about his plans for the digital asset sector post-election. This forms the basis of Balchunas’s speculation. Having a crypto-inclined leader in the White House would go a long way in promoting digital assets-based products.
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
Plus, it is expected that should Trump become President of the US, Gensler will be ousted from his position as SEC Chairman. The crypto community is expecting that he is replaced by Robinhood’s Chief Legal Officer (CLO) Dan Gallagher. Meanwhile, if Biden wins, Balchunas suggests that Solana ETFs will likely be “dead on arrival”.
Cboe Files to List VanEck And 21Shares’ Potential Solana ETFs
So far, VanEck and 21Shares have filed with the securities regulator to list spot Solana ETFs.
On Monday, the Chicago Board Options Exchange (Cboe) filed applications to list both VanEck and 21Shares’ proposed ETFs, suggesting a progression in the push for the new ETF. The exchange sees prospects for the Solana ETFs, comparing them to spot Bitcoin and spot Ethereum ETFs which received SEC approval in January and May respectively.
Solana ranks amongst these digital currencies whose decentralization, throughput, and speed make them resistant to manipulation that could potentially cause harm to investors. In both filings, Cboe lauded Solana’s capabilities.
“Much like Bitcoin and ETH, the Exchange believes that SOL is resistant to price manipulation and that ‘other means to prevent fraudulent and manipulative acts and practices’ exist to justify dispensing with the requisite surveillance sharing agreement,” Cboe wrote.
Noteworthy, the Commission is yet to acknowledge the Solana ETF filings from both VanEck and 21Shares. ETF analyst Nate Geraci highlighted that when these acknowledgments finally come, the decision clock will begin to tick. Based on the regulator’s decision timeline rule, this ‘clock’ has only 240 days to tick, during which approval or rejection will be pronounced.
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