Solana ETFs Await SEC Verdict: US Presidential Election Could Swing Fate

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The Chicago Board Options Exchange (CBOE) filed form 19b-4s for Solana exchange-traded funds (ETFs) to the United States Securities and Exchange Commission (SEC).

The format 19b-4s is used to inform the SEC of a rule change proposed by a self-regulating organization (SRO) that exercises a certain degree of authority over an industry. In this format, the SEC eventually invites the public to give their opinion and subsequently publishes all the comments regarding the rule changes proposed in that form.

SEC Has Deadline Until Mid-March 2025 For Solana ETF Decision

The CBOE presented the 19b-4s format for trading the Solana ETF spot for the first two issuers, VanEck and 21Shares. The SEC would have until 2025 to respond to the request. The process is similar to that which occurred with spot Bitcoin and Ethereum ETFs.

ETF analysts believe that the approval chances will increase if Donald Trump wins the Presidential election in November 2024.

“Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most important date is in November. If Biden wins, these likely dead on arrival. If Trump wins, anything is possible,” ETF analyst Eric Balchunas said.

Meanwhile, Nate Geraci, the President of the ETF store, stressed that once the SEC acknowledges these filings, the decision clock starts ticking. That being said, the price of Solana is up by over 6.47% in the past 24 hours. It is currently trading at $141.07.

Last month, VanEck’s chief of research, Matthew Sigel, discussed the regulation of cryptocurrencies in the United States after the firm’s recent attempt to register a Solana ETF spot. He mentions that a Solana ETF is a possibility, given how smoothly the process of Ethereum’s spot ETF approval went.

Prospects for Solana’s ETF spot have changed in recent weeks. However, at the end of May, ETF analyst James Seyffart emphasized the regulatory obstacles that Solana might face for ETF approvals.

“Based on current precedent/needs — Will happen within a few years of getting a CFTC regulated futures market. But Congress & Market structure bills like FIT21 could make it happen quicker. I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH). But SEC isn’t dancing around SOL’s status like they have ETH. Those lawsuits against Coinbase and Kraken and others flat out say ‘Solana is a security’. Which could very easily make this a very rocky road,” Seyffart noted.

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