VanEck, 21Shares Solana ETF Apparently Removed From Cboe Website

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As a seasoned crypto investor with over a decade of experience navigating the ever-changing landscape of digital assets, I find myself intrigued by the recent turn of events regarding the Solana ETF filings by VanEck and 21Shares. The disappearance of their 19b-4 forms from the Cboe website has sparked a frenzy in the community, with many speculating about the fate of these proposed products.

The filings for a Solana exchange-traded fund (ETF) by VanEck and 21Shares, which were initially posted on the Cboe website, are no longer accessible. These companies submitted S-1 forms for a Solana ETF in late June following the SEC’s decision to approve nine Ethereum ETFs.

Have VanEck and 21Shares Dropped Plans For Spot Solana ETF?

It seems that the forms for Solana ETFs by VanEck and 21Shares, which were previously listed on the Cboe website, have been taken down. This was mentioned in a post on the X platform on August 17th. Furthermore, when trying to access them directly or through the BZX Pending Rule Changes, the documents SR-CboeBZX-2024-066 and SR-CboeBZX-2024-067 are no longer found.

On July 8, VanEck and 21Shares submitted 19b-4 applications for Solana spot ETFs, which they had first announced in their S-1 filings in June. The U.S. Securities and Exchange Commission has not traditionally acknowledged receipt of such filings, leading to speculation that the 19b-4 applications may have been withdrawn. This lack of confirmation has sparked a discussion about the status of these applications.

VanEck, 21Shares Solana ETF Apparently Removed From Cboe Website

In simpler terms, submitting a 19b-4 document marks the second phase in the Exchange Traded Fund (ETF) process following an S-1 form. This document notifies the Securities and Exchange Commission (SEC) about a proposed rule change by an organization that regulates itself, such as an exchange. Once the 19b-4 filing is made, the SEC acknowledges receipt of it. Following this, a 240-day period begins during which the regulator makes its decision on the product in question.

ETF Experts Reacts on the Missing Filings

Scott Johnsson, legal advisor at Van Buren Capital, finds it unsurprising that events are unfolding as they are within the U.S. Securities and Exchange Commission under Gary Gensler’s leadership. According to Johnsson, Gensler likely would have denied the applications for VanEck and 21Shares Solana ETFs following their submissions. He is known for his skepticism towards cryptocurrencies and hesitant to approve any crypto-based exchange-traded funds.

As an analyst, I am inferring that Gary may have communicated to CBOE that the submitted Solana (SOL) applications were incorrectly categorized as Commodity-Based Trust Shares. This is likely due to his belief that SOL does not qualify as a commodity. Consequently, if this assumption is accurate, it would bypass the need for the Securities and Exchange Commission (SEC) to issue a formal written disapproval order, which typically serves as a final agency action subject to review.

My guess on what is happening is Gary says SOL ETF is DOA under his watch (not surprising).
— Scott Johnsson (@SGJohnsson) August 17, 2024

As a researcher, I’ve recently come across information indicating that Nate Geraci, President of ETFStore, has confirmed the removal of the ETF 19b-4 filings. Notably, he expressed his belief that the Solana ETF will not be granted approval in the near future under the present administration.

Currently, Solana’s (SOL) price is being influenced by selling activity, as the overall crypto market trend leans bearish. Today, the Fear & Greed Index reached a low of 25, indicating widespread fear among investors, causing a sense of panic. At present, SOL is being traded at $139.51, marking a 3% decrease in the last 24 hours. The trading volume has noticeably dropped by over 20% within the past day.

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2024-08-17 09:44