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The US Securities and Exchange Commission (SEC) approved the Bitcoin and Ethereum ETFs. However, the Solana Spot ETFs may not be approved soon, as the SEC is said to have turned down two 19b-4 applications from VanEck and 21Shares, which wanted to launch them.
After talking with the sellers, the SEC decided, based on worries, that Solana should be considered a security. The SEC once said so in several court cases.
Most of the time, platforms like CBOE file the 19b-4 forms on behalf of producers. These reports are important because they start the SEC's approval process if accepted and put in the Federal Register. The S-1 registration statement, on the other hand, which is filed directly by producers, does not have any limits. However, because the SEC didn't like the 19b-4 forms, they were never published in the Federal Register. This stopped the process before it started, so the forms were removed from Cboe's website.
Currently, 21Shares and VanEck are the companies that want to make Solana ETFs. 21Shares's S-1 forms can't be found in the SEC's EDGAR database, which is a progress. VanEck's S-1 form, on the other hand, is still valid; Matthew Sigel, the head of research at the company, confirmed that it "remains in play." It is important to note that VanEck sees SOL as a good, like Bitcoin (BTC) and Ethereum (ETH).
The 19b-4 rejections were a setback, but the application could soon be resubmitted or changed with better proof that Solana is not a security.
Mathew Sigel said, "This belief is based on changing legal perspectives. Courts and regulators have started recognizing that some crypto assets may behave more like commodities in secondary markets than as securities in primary markets." He also said that Solana has made much progress in independence over the past year.
"We are still committed to taking this position with our exchange partners to the right regulators," he said.
While this happens, Brazil is about to launch its first exchange-traded fund in Solana. The Brazilian Securities and Exchange Commission (CVM) gave the financial vehicle the green light about two weeks ago. At this point, the SOL ETF is not yet active, so it needs to be accepted by the B3 stock market in Brazil. The move in Brazil has given people in the crypto world hope that the U.S. will follow suit.
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