TL;DR

The Cboe BZX Exchange refiled Solana ETF applications for Bitwise, VanEck, 21Shares, and Canary Capital, reflecting a more crypto-friendly regulatory environment.
The SEC’s new acting chair, Mark Uyeda, has introduced changes boosting confidence in crypto-based ETF approvals, including revoking restrictive measures and establishing a crypto task force.
Market confidence is high, with predictions that approved Solana ETFs could attract $3 billion to $6 billion in net assets within the first year, potentially outperforming Ethereum ETFs.

The Cboe BZX Exchange refiled several Solana ETF applications on behalf of four issuers: Bitwise, VanEck, 21Shares, and Canary Capital. This move comes after the U.S. SEC rejected the initial applications last year. The refiling reflects a more crypto-friendly regulatory environment and renewed optimism for the approval of Solana ETFs.

Regulatory Shifts and Optimism

The SEC’s new acting chair, Mark Uyeda, has introduced several changes that have boosted confidence in the approval of crypto-based ETFs. Under Uyeda’s leadership, the SEC has reversed some restrictive measures implemented by former SEC head Gary Gensler, who stepped down in January 2024.

Notably, the SEC revoked SAB 121, an accounting rule that required U.S. companies holding crypto on behalf of clients to record digital assets as liabilities on their balance sheets. Additionally, the SEC established a crypto task force led by Commissioner Hester Peirce to design and implement a digital asset regulatory framework in the U.S.

Market Confidence and Predictions

Market confidence in the approval of Solana ETFs is surging. Users of the decentralized betting platform Polymarket place the odds of these SOL funds getting the green light in 2025 at 86%, marking a 28% increase over the last month.

Analysts from JPMorgan predict that approved spot Solana ETFs could attract between $3 billion and $6 billion in net assets within the first year, potentially outperforming spot Ethereum ETFs.

Broader Implications

If authorized, Solana may become the third cryptocurrency to have a spot ETF in the United States, following Bitcoin and Ethereum, which were introduced last year and have since recorded over $41 billion in cumulative inflows.

The approval of Solana ETFs would further legitimize the cryptocurrency market and provide investors with more diversified options. The refiling of Solana ETF applications by the Cboe BZX Exchange marks a significant step towards potential approval.

With a more favorable regulatory environment and growing market confidence, the approval of Solana ETFs seems increasingly likely. Investors and the crypto community will be closely watching the SEC’s decision, which could have far-reaching implications for the future of cryptocurrency investments.

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Filed under: News - @ January 29, 2025 1:21 pm