Breaking: 21Shares Submits Application For Solana ETF
Swiss-based Asset Management firm 21Shares has filed a solo application to list a Solana ETF in the United States. This filing comes in just about 24 hours after major rival VanEck pioneered the move.
The Growing Race for Solana ETF
According to the filing from 21Shares, the application is hinged on the premise that Solana is not a security under US laws. Should the digital currency become labeled as a security by the United States Securities and Exchange Commission (SEC), 21Shares might pull its application. Backtracking on its push is hinged on the likelihood that 21Shares might be unwilling to go further to meet additional registration requirements.
The conversation surrounding a Solana ETF became ignited when the SEC approved spot Bitcoin ETF trading. The altcoin pitch for the product also grew with the 8 Ethereum ETF approvals last month. If the permutations that made the SEC approve Ethereum is applied, 21Shares and VanEck remain optimistic that Solana might also get approval for its ETF.
In the meantime, 21Shares plans to offer the potential ETF “on the Cboe BEZX exchange.” Like other recently approved crypto ETFs, the Solana ETF is touted as a convenient and cost-effective method for investors to gain investment exposure to SOL without making a direct investment in SOL. By engaging his approach, investors are not likely to be affected by the risks associated with holding these crypto.
Here Comes a Shift in Crypto Regulatory Landscape
VanEck’s head of Digital Assets Research, Matt Sigel, recently discussed the decision to move ahead with the filing for Solana ETF, “We believe that the regulatory landscape is shifting.” 21Shares latest move suggest that it agrees with VanEck on the pivot in the digital asset regulatory plane. In the coming weeks, more applications may show up from other asset managers.
VanEck may truly be right about the shift in the regulatory framework for the crypto ecosystem because a recent development has stripped the SEC of its bragging rights. On Friday, the Supreme Court overturned a decision that has given federal authorities, including the SEC, broad regulatory power for many years.
A couple of regulatory agencies were known for interpreting the laws they are tasked with enforcing. However, the Court’s decision brings a new era to crypto firms and upcoming crypto products like Solana ETFs.
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