The U.S. Securities and Trade Fee (SEC) is acknowledging crypto asset administration agency Grayscale’s bid to create an exchange-traded fund (ETF) for the good contract platform Solana (SOL).
In a brand new thread on the social media platform X, Bloomberg ETF analyst James Seyffart says the SEC formally acknowledging the bid is noteworthy as a result of the regulatory company had beforehand rejected it.
“UPDATE: SEC simply acknowledged the Grayscale Solana 19b-4. That is really newsworthy as a result of the SEC had refused to do that in current submitting makes an attempt for SOL.”
ETFs permit merchants to show themselves to belongings resembling valuable metals and crypto with out having to really buy them. The SEC permitted Bitcoin (BTC) and Ethereum (ETH)-based ETFs in 2024.
Based on senior Bloomberg ETF analyst Eric Balchunas, the acknowledgment is a small step in the proper route because the SEC below former Chair Gary Gensler instructed the Chicago Board Choices Trade (CBOE) to withdraw its utility for a Solana ETF.
“Notable as a result of that is the primary time an ETF submitting monitoring a coin that had beforehand been referred to as a ‘safety’ has been acknowledged by [the] SEC.
Solely six weeks in the past the [Gensler]-led SEC informed CBOE to withdraw their Solana 19b-4. So we at the moment are in new territory, albeit only a child step, however seemingly the direct results of management change.”
In December, the SEC shot down all SOL-based ETF purposes earlier than Gensler resigned from his place previous to the inauguration of President Donald Trump. On the time, Balchunas predicted the corporations would reapply after the regime change.
Seyffart goes on to note the SEC altering its tune on Solana would possibly fare properly for crypto corporations going through lawsuits the place the regulatory physique claims SOL qualifies as a “safety.”
The ultimate deadline for Grayscale’s utility can be round October eleventh, in response to Seyffart.
Solana is buying and selling for $193.37 at time of writing, a 1.3% improve over the past 24 hours.
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