Cboe Files for SEC Approval to List Solana ETFs

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The Chicago Board Options Exchange seeks regulatory permission to offer the first U.S. spot Exchange-Traded Funds based on Solana, potentially opening doors for mainstream adoption of the fifth-largest cryptocurrency.

In a significant move for the cryptocurrency market, the Chicago Board Options Exchange (Cboe) has filed an application with the U.S. Securities and Exchange Commission (SEC) for rules changes that would allow the listing of the first U.S. spot Exchange-Traded Funds (ETFs) based on Solana. This development could mark a pivotal moment for Solana, currently the fifth-largest digital asset by market capitalization.

Cboe submitted filings on Monday for funds proposed by VanEck and 21Shares. Once the SEC acknowledges these applications, the regulator will have 240 days to reach a decision, potentially as early as March 2025. This timeline aligns with the observation made by Bloomberg Senior ETF Analyst Eric Balchunas, who noted on social media platform X that “Solana ETFs are going to have a final deadline of mid-March 2025.”

The move comes less than two weeks after VanEck and 21Shares filed S-1 registration statements for these new products, aiming to expand offerings for crypto-enthusiastic investors. Solana’s $65 billion market capitalization places it behind only Bitcoin, Ethereum, Tether, and Binance Coin in the cryptocurrency rankings.

The potential approval of Solana ETFs follows the successful launch of spot Bitcoin ETFs on January 10, which have already generated approximately $15 billion in inflows, according to U.K.-based asset manager Farside Investors. The crypto industry is also anticipating the SEC’s decision on spot Ethereum ETFs later this month, with several major financial institutions, including BlackRock, Fidelity, and Grayscale, having filed amended S-1 prospectuses for their Ethereum funds.

Solana’s recent trading price of just above $140 represents a 1.5% increase over the past 24 hours and a nearly sevenfold rise over the past year, reflecting the current bullish cryptocurrency market.

The success of these applications may hinge on the outcome of the upcoming U.S. presidential election. Balchunas suggested that approval might be more likely under a Trump administration, given the current administration’s skeptical stance on cryptocurrencies.

If approved, Solana ETFs could significantly impact the cryptocurrency’s adoption and market value. They would provide a regulated and familiar investment vehicle for traditional investors to gain exposure to Solana without directly holding the cryptocurrency, potentially bridging the gap between conventional finance and the crypto world.

The crypto community now eagerly awaits the SEC’s decision, which could pave the way for broader mainstream adoption of Solana and potentially influence the wider cryptocurrency market.