The Cboe has officially announced its plans to launch SOL ETFs with the help of VanEck and 21Shares. This move could potentially revolutionize cryptocurrency trading if approved. Previous attempts to introduce Solana (SOL) exchange-traded funds (ETFs) have been unsuccessful, but now new efforts are being made to list this highly traded cryptocurrency. According to CoinGecko, SOL has become the most popular blockchain ecosystem this year, with Ethereum following closely behind.
The Chicago Board Options Exchange (Cboe) Global Markets, an exchange operator, has filed a request with the U.S. Securities and Exchange Commission (SEC) to list ETFs linked to Solana. The products will be from asset managers VanEck and 21Shares. This filing has initiated the process for the SEC to either approve or deny the operator’s 19b-4 application. The Commission has 240 days to make a decision based on its rules.
Rob Marrocco, the global head of ETP listings at Cboe Global Markets, stated that they are responding to the growing investor interest in SOL, which is one of the most actively traded cryptocurrencies after Bitcoin and Ether. Cboe has previously listed the first U.S. Spot Bitcoin ETFs and received SEC approval for rule filings to list spot Ether ETFs.
VanEck submitted the S-1 form for SOL with the SEC in June, followed by 21Shares the next day. The S-1 form is necessary when an entity wants to introduce a new security to the market. Securities must undergo an S-1 filing before they can be listed on a national exchange platform. The 19b-4 form is used by self-regulatory organizations to inform the SEC of a rule change, which must be justified for approval.
It is worth mentioning that Cboe is not solely focused on SOL. They received SEC approval for their 19b-4 filings for Ethereum in May 2024 and are preparing to start trading ETH ETFs soon. However, final approval is still pending, as these products typically go through a two-stage approval process.
Experts anticipate a significant increase in SOL’s liquidity if the ETF is approved, with Spot SOL ETFs projected to attract around $3 billion in inflows over time. A substantial portion of this anticipated amount is expected to flow through ETFSwap. The current price of Solana stands at approximately $139.55.
This development in the cryptocurrency market signals a new era for SOL and could potentially open up opportunities for investors looking to diversify their portfolios with digital assets. The growing interest in SOL reflects the shifting landscape of the financial market towards embracing blockchain technology and cryptocurrencies as viable investment options. As regulatory bodies continue to evaluate and approve innovative financial products like SOL ETFs, the potential for further growth and adoption of cryptocurrencies in mainstream finance remains promising.