Election Could Decide Fate of Solana ETFs
The SEC's decision on Solana ETFs, influenced by the 2024 election, could hinge on whether Trump or Biden wins, impacting cryptocurrency regulations.
The Chicago Board Options Exchange (CBOE) has submitted Form 19b-4s for Solana exchange-traded funds (ETFs) to the United States Securities and Exchange Commission (SEC). This form informs the SEC of proposed rule changes by a self-regulating organization (SRO) overseeing an industry. The SEC then invites public comments and publishes all feedback on the proposed changes.
The CBOE has proposed trading the Solana ETF spot for VanEck and 21Shares. The SEC has until mid-March 2025 to respond to this proposal. This process is similar to that for Bitcoin and Ethereum ETFs. Analysts believe the approval chances depend on the 2024 Presidential election outcome. If Donald Trump wins, approval chances may rise, while a Biden victory could reduce them. "If Biden wins, these are likely dead on arrival. If Trump wins, anything is possible," said ETF analyst Eric Balchunas.
Nate Geraci, President of the ETF Store, noted that once the SEC accepts these filings, the decision clock starts ticking. Solana's price has increased by over 6.47% in the past 24 hours, now trading at $141.07. VanEck’s research chief, Matthew Sigel, discussed US cryptocurrency regulation, saying a Solana ETF is possible, especially given Ethereum’s smooth spot ETF approval.
Recently, the prospects for Solana’s ETF spot have changed. ETF analyst James Seyffart highlighted the regulatory challenges Solana might face. "A SOL ETF would see most demand vs other digital assets (aside from BTC & ETH). But SEC isn’t treating SOL like ETH. Lawsuits against Coinbase and Kraken say ‘Solana is a security’, which could make this a very rocky road," Seyffart noted.
The approval of Solana ETFs could be significantly influenced by the political climate. Analysts believe the next administration’s stance on regulation will be crucial. A Trump win in 2024 might increase approval chances, given a more crypto-friendly Republican stance. Conversely, a Biden win might lead to stricter regulations and lower approval chances.
The Solana ETF spot proposal has generated reactions among investors and analysts. Public comments gathered by the SEC will shape the final decision. The market has responded positively, as seen in Solana’s recent price rise. Investors are watching closely, aware that the decision will impact the cryptocurrency market.
The SEC has until mid-March 2025 to decide on the Solana ETFs. The 2024 Presidential election is a key factor that could influence the outcome. Despite regulatory hurdles, support from a potential Trump administration could boost approval chances. As the SEC reviews public comments and the proposal, the market awaits how these developments will shape the future of cryptocurrency ETFs.
