Spot Solana ETF Delayed as SEC Still Considers SOL a Security

Key Points:

• The SEC and Cboe have delayed filings related to spot Solana ETFs due to concerns over Solana’s classification as a security.
• The absence of necessary filings has sparked speculation about the future of proposed Solana ETFs.

According to The Block, the U.S. Securities and Exchange Commission held discussions with prospective issuers of spot Solana ETFs over concerns that Solana can be classified as a security.

Read more: Spot Solana ETF Filings Have Now Disappeared, Raising Suspicions of Issuer Withdrawal

Spot Solana ETF Filings Halted by SEC Due to Possible Security Status

Thus, 19b-4 filings for the spot Solana ETFs were pulled from the Cboe BZX website. Originally, these filings had sought SEC approval to list the proposed Solana ETFs of VanEck and 21Shares.

Cboe originally filed the 19b-4 filings needed to advance the process of getting these ETFs approved on July 9, but the fact that the filings haven’t appeared yet on the Cboe website or in the Federal Register at this point has triggered speculation over the status of these proposed funds as of August 9.

The decision to withdraw the filings from the Federal Register is said to delay the approval process because once the applications are listed there, the SEC is under pressure to issue a ruling within the stipulated time.

Both the 19b-4 forms and the S-1 registration statements must be approved to greenlight the ETFs. While VanEck’s S-1 statement remains active in the SEC’s EDGAR system, 21Shares’ S-1 filing no longer comes up in search, though it is still accessible through direct link.

Regulatory Hurdles Cast Doubt on Spot Solana ETF Approval

Interest in Solana comes on the back of a general interest in Bitcoin and Ethereum ETFs, but there are legal uncertainties and the lack of futures product in Solana. Much like what has happened with Bitcoin and Ethereum, future products need to be made before any spot ETFs come to life.

Meanwhile, the settlement of the SEC’s lawsuit against Ripple last week came with a $125 million fine but fell short of labelling XRP security in all instances—leaving the regulatory landscape still in flux for cryptocurrencies such as Solana.