Solana (SOL) enthusiasts are eagerly awaiting the approval of a Solana exchange-traded fund (ETF) in the US. However, senior Bloomberg ETF analyst Eric Balchunas believes that the chances of this happening anytime soon are slim to none. Balchunas remarked that the approval of a Solana ETF is as likely as “a snowball’s chance in hell” unless there is a change in leadership at the Securities and Exchange Commission (SEC).
Balchunas pointed out that the 19b-4 forms filed for Solana ETFs by the Chicago Board Options Exchange (Cboe) have not been acknowledged by the SEC, leading to the withdrawal of the forms by Cboe. Despite this setback, VanEck’s application for a spot Solana ETF is still active, according to VanEck’s head of digital assets research Matthew Sigel. Sigel sees Solana as a digital commodity rather than a security, citing its decentralized structure and utility in the digital market.
Although Sigel is optimistic about the potential for a Solana ETF, Bloomberg ETF analyst James Seyffart notes that the SEC has been adamant about considering SOL as a security. The regulator has recently filed an amendment in a lawsuit against Binance to avoid a legal classification of tokens like Solana. This uncertainty surrounding the regulatory status of digital assets has raised concerns among industry players.
Despite these challenges, the interest in Solana and its potential for a US-traded spot ETF remains strong. Investors believe in the value proposition of Solana as a digital commodity and are hopeful for regulatory clarity in the future. With the ongoing debate surrounding Solana’s security status and the SEC’s approach to digital assets, the path to approval for a Solana ETF in the US may still be unclear. Only time will tell if Solana will have its moment in the spotlight as an ETF asset for US investors.
