Cboe BZX Resubmits Solana ETF Filings for VanEck, Canary, Bitwise, and 21Shares

Highlights:

• Cboe BZX resubmitted filings for four Solana ETFs after SEC rejections last year.
• Spot SOL ETFs face SEC scrutiny over Solana’s classification as a commodity or security.
• Grayscale also seeks to convert its Solana Trust into an ETF.

On Jan. 28, Cboe BZX Exchange Inc. resubmitted filings for four asset managers aiming to launch a Solana exchange-traded fund (ETF). This comes after the US Securities and Exchange Commission (SEC) rejected the applications late last year. The exchange submitted new 19b-4 filings for the Bitwise Solana ETF, 21Shares Core Solana ETF, Canary Solana Trust, and VanEck Solana Trust.

UPDATE: @CBOE just re-filed all of their Solana ETF 19b-4s for @vaneck_us, @CanaryFunds, @BitwiseInvest & @21Shares pic.twitter.com/CUogAWBl6u

— James Seyffart (@JSeyff) January 28, 2025

A 19b-4 filing is a document submitted by exchanges on behalf of issuers. Once acknowledged by the U.S. Securities and Exchange Commission and published in the Federal Register, the agency’s approval process starts. If approved, these ETFs would expose traditional investors to Solana without needing to hold the cryptocurrency directly.

VanEck was the first asset manager to submit a 19b-4 application for a Solana ETF to the SEC on June 27. 21Shares followed with its submission on June 28, and Canary Capital submitted for Solana ETF in late October. Bitwise filed for a spot SOL ETF after Donald Trump’s election win in November. Moreover, Grayscale has pursued its own Solana ETF plans. In December, the firm filed to convert its existing Solana Trust into an ETF on NYSE Arca.

Challenges in the Approval of SOL ETFs

Spot SOL ETFs face challenges due to the SEC’s classification of SOL as either a commodity or a security. The SEC has consistently treated Bitcoin and Ethereum as commodities, which allowed Bitcoin and Ethereum ETFs to be approved last year. Solana is likely to face scrutiny due to its governance model and its distinct purpose, unlike Bitcoin and Ethereum.

SOL ETFs are not the only new development in the crypto ETF space. Tuttle Capital Management recently filed 10 applications with the SEC for leveraged crypto ETFs, including one for SOL. This follows Cboe BZX Exchange’s 19b-4 application to the SEC, proposing the listing of Bitcoin and Ethereum ETFs.

Solana ETF Approval and Donald Trump’s Crypto Vision

Bloomberg analysts Eric Balchunas and James Seyffart predicted last month that Solana ETFs could be approved this year. However, Litecoin (LTC) and Hedera (HBAR) products may be approved first. Seyffart suggested Litecoin’s ties to Bitcoin could help it get a commodity classification. HBAR, not labeled a security, is ahead of tokens under regulatory scrutiny.

We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending… pic.twitter.com/29vMdciZxE

— Eric Balchunas (@EricBalchunas) December 17, 2024

A new wave of crypto ETFs started during Donald Trump’s presidency. With Mark Uyeda now acting SEC Chair, there’s hope for more approvals, unlike under Gary Gensler. Trump has also aimed to make the U.S. the global crypto hub.

Recently, JPMorgan predicted XRP and Solana ETPs could attract $3-8 billion each within a year. Bitcoin ETFs gathered $108 billion in their first year, about 6% of Bitcoin’s market cap, while Ether ETFs reached $12 billion, or 3% of Ether’s market cap. JPMorgan applied similar adoption rates to Solana and XRP ETPs, estimating inflows of $3-8 billion each.