tl;dr
Cboe BZX Exchange has refiled applications for four Solana-based ETFs on behalf of major investment firms, restarting the SEC review process for spot Solana investment products. If approved, these ETFs would provide traditional investors with exposure to Solana without holding the crypto directly, p...
Cboe BZX Exchange has refiled applications for four Solana-based ETFs on behalf of major investment firms, reigniting the race for Solana-based ETFs and potentially broadening access to the digital asset market. The SEC review process for spot Solana investment products has been restarted, facing unique regulatory hurdles regarding Solana's classification as a commodity or security.
The filings for the Canary Solana Trust and VanEck Solana Trust seek approval under commodity-based trust frameworks, highlighting distinct approaches to addressing regulatory concerns. Additionally, Grayscale separately pursues its Solana ETF ambitions, aiming to convert its existing Solana Trust into an ETF on NYSE Arca.
Cboe BZX Exchange's refiling of applications for four major investment firms reignites the race for Solana-based ETFs. This move restarts the SEC review process for spot Solana investment products and aims to provide traditional investors with exposure to Solana without directly holding the crypto, potentially expanding access to the digital asset market.
Solana remains the third-largest crypto with a market capitalization exceeding $111 billion, and the SEC's review of these ETF applications follows the regulator’s request to withdraw previous applications last year.
The core challenge regarding Solana's ETF approval centers on whether it qualifies as a commodity or security, a distinction critical for previous industry-related ETF approvals. Both the Canary Solana Trust and VanEck Solana Trust are seeking approval under commodity-based trust frameworks, with distinct approaches to addressing regulatory concerns.
Meanwhile, Grayscale has separately pursued its own Solana ETF ambitions by filing to convert its existing Solana Trust into an ETF on NYSE Arca.
The push for Solana-based ETFs comes as the cryptocurrency maintains its position as the third-largest, with a market capitalization exceeding $111 billion, according to data from CoinGecko.