On Tuesday, the U.S. Securities and Exchange Commission acknowledged several Solana-based exchange-traded fund applications, signaling progress on new altcoin funds entering the US market. Observers see the move as a shift from how the regulator had previously considered such financial instruments.
SEC Opens Public Comment On Four SOL ETFs
In a regulatory filing on Feb. 11, the SEC opened up public comment on Canary Capital’s Solana Trust — a proposed exchange-traded fund that would bring SOL investing to Wall Street.
Later in the day, the Securities and Exchange Commission acknowledged similar filings from VanEck, 21Shares, and Bitwise.
The development follows the SEC soliciting public comments on a proposal last week to list and trade the Grayscale Solana Trust, which the asset management giant wants to convert into a SOL ETF.
Franklin Templeton also looks primed to enter the SOL ETF race. On Tuesday, the firm filed documents in Delaware to register the Franklin Solana Trust, which, if approved, would track the price movement of the world’s fifth-largest crypto — which CoinGecko data shows has a $95 billion market cap.
SOL ETF Approval Odds Reach 70%
Previously, the SEC had rejected the investment firms’ applications to list Solana ETFs. But now, with a pro-crypto United States government under President Donald *****, momentum seems to be gathering around potential altcoin ETFs. Notably, the new SEC has already launched a dedicated crypto task force headed by Commissioner Hester Peirce.
Many believe ETFs tracking Solana, Litecoin, Ripple’s XRP, and Dogecoin will get the green light in 2025. As ZyCrypto previously reported, Bloomberg analysts James Seyffart and Eric Balchunas tip the probability of Solana ETFs being greenlighted by the U.S. SEC at 70%.
One hindrance that could emerge for SOL-based ETFs is the debate of whether to categorize the crypto as a commodity or security. The SEC has labeled SOL as an unregistered security in multiple suits against exchanges like Binance, Kraken, and Coinbase. Nonetheless, all signs suggest the securities watchdog, under new leadership, will be more amenable than in the past.
Hopes swelled after the SEC, and Binance filed a joint motion to temporarily pause their ongoing legal fight to allow the crypto task force to figure out a possible resolution.