SEC Acknowledges Multiple Solana ETF Filings, Increasing Approval Chances
In a recent development, the Securities and Exchange Commission (SEC) has taken notice of several Solana ETF filings, suggesting a possible green light in the future. While analysts initially favored the idea of a Litecoin or Dogecoin ETF approval, the focus appears to have shifted towards Solana in the SEC's latest moves.
The crucial factor determining the approval of an ETF lies in how the SEC categorizes the token as either a security or a commodity.
The odds of a Solana ETF gaining approval received a significant boost as the SEC opened a public comment period for the proposed Canary Solana Trust by Canary Capital. Additionally, applications from prominent entities like VanEck, 21Shares, and Bitwise have been acknowledged, hinting at a potential push towards approving Solana investment products.
This marks the beginning of the decision-making process, as the SEC now has 21 days to consider and decide on these applications. While delays are to be expected, experts in the industry foresee a potential wave of ETF approvals for Solana and other alternative coins by 2024.
Recent insights from Bloomberg analysts suggest that Litecoin and Dogecoin ETFs might have a higher likelihood of approval compared to Solana and XRP. However, current indications point towards the SEC showing a keen interest in several Solana ETF proposals.
Eric Balchunas shared his insights, stating, "Our official altcoin ETF approval odds are out. Litecoin leads with a 90% chance, then Doge, followed by Solana and XRP. We are only doing 33 Act $IBIT-esque filings. But it is possible to see futures or Cayman-subsidiary type 40 Act stuff get through as well."
With the SEC's recent acknowledgment of Grayscale’s Solana ETF application, attention now turns to whether other altcoins like XRP or Dogecoin will be considered.
Among various asset managers, the focus on Solana persists, with Franklin submitting a Solana Trust application recently, paving the way for a potential ETF request in the future.
As the landscape evolves, the odds on Polymarket, a prominent prediction market, reflect an 82% chance of a Solana fund gaining approval within the year.
While Solana remains a focal point for ETF discussions, other altcoins, including Hedera, are also in line for consideration. The SEC is expected to approach these assets on a case-by-case basis, providing regulatory clarity on securities and commodities.
As the industry anticipates broader approvals for altcoin ETFs, Solana emerges as a key focus for the SEC in the current scenario.