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VanEck and 21Shares’ Solana ETF Applications on Cboe Found Inaccessible, Are They DOA?
- Crypto Twitter speculates on the accessibility issues of VanEck and 21Shares’ 19b-4 forms for Spot Solana ETFs.
- Finance lawyer Scott Johnsson believes Gary Gensler directly halted SOL ETF applications, bypassing formal disapproval due to misclassification.
- Despite setbacks, VanEck’s Solana Trust S-1 filing is still active, indicating ongoing efforts to secure regulatory approval.
Crypto Twitter has been speculating about Spot Solana exchange-traded fund (ETF) applications over the weekend. One account posted about VanEck and 21Shares and how their 19b-4 forms on the Cboe website are no longer accessible.
Summers wrote that links to documents SR-CboeBZX-2024-066 and SR-CboeBZX-2024-067 are no longer working.
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Finance lawyer Scott Johnsson added that it’s likely that “Gary [Gensler] says SOL ETF is DOA under his watch (not surprising)”.
In a series of posts, he suggests that the Securities and Exchange Commission (SEC), led by Gary Gensler, may have intervened directly with the Cboe to halt the processing of these applications without going through a formal disapproval process.
Gary Gensler Likely Still Views SOL as a Security
Johnsson speculates that this intervention was likely due to a classification issue, where SOL was not deemed a commodity, thus making the original filing inappropriate for Commodity-Based Trust Shares.
This echoes statements by Gensler who has said many times that he believes “anything other than Bitcoin” is a security.
Johnsson notes:
Instead of running through the full 19b-4 process, I’m assuming Gary notified CBOE that these SOL apps were improperly filed as Commodity-Based Trust Shares (because he thinks SOL isn’t a commodity), which obviates the need for the SEC to provide a formal written disapproval order (that is reviewable as a final agency action).
Scott Johnsson Johnsson also draws a parallel with previous SEC considerations regarding Ethereum ETF applications, highlighting that once the 19b-4 process is initiated, the SEC is compelled to issue a formal approval or disapproval.
He suggests that future SOL ETF filings will require resolution of related exchange enforcement actions before receiving a fair hearing under the 19b-4 rules. This implies a strategic waiting period for issuers who wish to file for a SOL ETF successfully.
No SOL ETF Without Change in Administration, Says Expert
President of the ETF Store, Nate Geraci agrees with this assessment, saying unless there’s a change in political leadership, there won’t be a SOL ETF.
Despite this, the S-1 filing by VanEck for a Solana Trust, filed on 27 June 2024, is still accessible on the regulator’s website. This could suggest that there is still intent and possibly progress towards getting the regulatory go-ahead for the fund itself.
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Less than two weeks ago, Brazil approved a Spot Solana ETF for the country in a world first. The news sparked expectations that the US could follow suit. However, observers like Geraci, ultimately don’t have much hope for a Solana or even XRP ETF filing…
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
