tl;dr
Alex Thorn, Head of Research at Galaxy Digital, analyzed the filings for spot Solana Exchange Traded Products (ETPs) by VanEck and 21Shares with the US SEC. The filings aim to integrate Solana into regulated financial markets, similar to Bitcoin and Ethereum. VanEck's proposal seeks to launch a comm...
VanEck and 21Shares have filed for spot Solana Exchange Traded Products (ETPs) with the SEC. The odds for approval are slim due to the SEC's view of Solana as an unregistered security and its historical caution with crypto ETPs. The recently passed FIT21 Act may impact future cryptocurrency regulation and ETP approvals.
Alex Thorn, Head of Research at Galaxy Digital, analyzed the filings for spot Solana ETPs. VanEck's proposal aims to launch a commodity-based trust to hold Solana directly, without staking, similar to Bitcoin and Ethereum's regulated market integration. The market responded positively with an approximate 8% increase in SOL's price. However, the filing lacks detailed operational structures, and the formal review process by the SEC could extend to around March 15, 2025.
The SEC's cautious approach and its view of Solana as an unregistered security make the approval odds slim. The recently passed FIT21 Act may impact future cryptocurrency regulation and ETP approvals. At the time of the report, SOL traded at $147.54.
The filings represent an aggressive move to integrate Solana into regulated financial markets. VanEck's proposal aims to launch a commodity-based trust that will hold Solana directly, allowing the ETP to track the asset’s market price closely, without engaging in staking the held assets. The market responded positively, with SOL’s price marking an approximate 8% increase. However, the filing lacks detailed operational structures such as custodian, cash custodian, and authorized participants.
VanEck has not yet filed the requisite 19b-4 form, triggering the SEC’s formal review process. The process involves several regulatory checkpoints and public comment periods. The SEC currently views Solana as an unregistered security, complicating the approval process. Historically, the SEC has been cautious towards crypto ETPs, with a sequential path for approval.
The recently passed FIT21 Act could play a crucial role in future cryptocurrency regulation, potentially impacting the odds of ETP approval for digital currencies beyond Bitcoin and Ether. The path forward for Solana ETPs is fraught with regulatory hurdles and uncertainties. At press time, SOL traded at $147.54.
More about Emeren Group Ltd
Emeren Group Ltd, ReneSola Ltd, develops, builds, operates and sells solar energy projects. The company is headquartered in Stamford, Connecticut.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
NAICS Code: 85922000
Dividend Yield: None
Market Cap: None
EPS: -0.16
PE Ratio: 1.918
EBITDA: -0.127
Volume: 106582000
52-Week High: 4.88
52-Week Low: 3.42
Price to Sales: 0.148