Solana ETF Filings Surge as Gensler Announces Resignation

Several major asset managers, including Bitwise, VanEck, 21Shares, and Canary Capital, have recently filed registration statements to list spot Solana (SOL) exchange-traded funds (ETFs) in the United States. These filings were submitted to the Cboe BZX Exchange, which could potentially list the Solana ETFs if approved by the U.S. Securities and Exchange Commission (SEC). This surge in filings coincides with the announcement of SEC Chairman Gary Gensler’s resignation, raising expectations for a more crypto-friendly regulatory environment under new leadership.

Four Major Firms File for Spot Solana ETFs

The filings come from some of the most recognized names in crypto asset management. Bitwise, VanEck, 21Shares, and Canary Capital have all submitted their respective 19b-4 filings, seeking approval to launch spot Solana ETFs on the Cboe BZX Exchange, a major U.S. trading platform. This follows earlier submissions of S-1 registration statements by VanEck, 21Shares, and Canary Capital, with the latter filing in late October.

Bitwise, a well-known crypto-focused asset manager, further solidified its intent to list a spot Solana ETF by registering a statutory trust for the fund in Delaware on November 20, followed by its official S-1 filing on November 21.

Gensler’s Departure and the Potential Impact on Crypto Regulation

These filings come amid significant shifts in the regulatory landscape, as SEC Chairman Gary Gensler announced his resignation, effective January 2025. Gensler, who had been seen as an adversary to the crypto industry, was expected to serve as SEC chair until 2026. His voluntary departure signals a potential change in the regulatory approach toward cryptocurrencies, with many industry experts anticipating a more crypto-friendly environment under new SEC leadership.

This change could pave the way for a clearer regulatory path for digital assets, possibly addressing concerns over Solana’s status as a security. A spokesperson for 21Shares expressed confidence that Solana’s native token, SOL, qualifies as a commodity, emphasizing that no court has classified SOL as a security. This aligns with several court rulings cited in their filings, which could help ease regulatory concerns and boost the approval process for Solana ETFs.

Broader Crypto ETF Developments

Alongside the Solana ETF filings, other asset managers have also submitted applications for spot XRP and Litecoin ETFs, signaling a broader trend in the crypto ETF market. However, the SEC has delayed its decision on Franklin Templeton’s crypto index ETF until January 2025.

While analysts predict that Solana’s spot ETFs might not experience the same large inflows seen with Bitcoin and Ether ETFs, Solana has shown impressive growth in the current bull cycle. The token has surged more than 2,500%, reaching $254.71, just shy of its all-time high of $259.96 from November 2021, according to CoinGecko data.

Conclusion

The flurry of filings for Solana ETFs and other crypto products comes at a pivotal time as the SEC’s leadership transitions. The crypto industry hopes that the change in leadership will bring more regulatory clarity and openness to crypto products, possibly enabling greater institutional adoption and paving the way for more crypto ETFs. While Solana ETFs may not attract the same volume as their Bitcoin or Ether counterparts, Solana’s performance this cycle suggests strong investor interest and potential for future growth.