Bitwise Files For Spot Solana ETF As Gary Gensler’s SEC Exit Looms

• Following Gensler’s resignation, Bitwise launched its application for the Solana ETF.
• It is anticipated that Canary Funds will also submit an application shortly.

Bitwise Asset Management became the latest company to apply for approval of Solana ETF on Monday. The company has submitted an S-1 application for a spot Solana ETF trust with a Delaware address to the U.S. SEC.

Solid Intel, a crypto analyst, revealed in a post on X that on November 20, 2024, it formally filed Form S-1 under the name “BITWISE SOLANA ETF.” This was an essential stage in the fund’s inception.

INTEL: BITWISE $SOL ETF REGISTERED IN DELAWARE pic.twitter.com/4uv5Y6eQuE

— Solid Intel (@solidintel_x) November 20, 2024

This move places Bitwise in the competitive race for regulatory clearance to introduce an index fund focused on Solana. That is the fourth-largest cryptocurrency by market cap.

Sources suggest that a leading global exchange, CBOE, is expected to submit 19b4 filings for other potential issuers shortly. Bitwise has now joined firms like VanEck, 21Shares, and Canary Funds, all of which have already filed S-1 applications for a Spot Solana ETF.

SCOOP: Talks between @SECGov staff and issuers looking to launch a $SOL spot ETF are “progressing” with the SEC now engaging on S-1 applications, according to two people familiar with the matter. These people say there’s a “good chance” we’ll see some 19b4 filings from…

— Eleanor Terrett (@EleanorTerrett) November 21, 2024

Despite widespread excitement among cryptocurrency enthusiasts, doubts remain about the immediate effects of the filing. The validity of the filing and its potential market impact have yet to be officially verified.

Currently, the Solana price was priced at around $260.19, with a rise of 1.40% change in the last 24 hours. Many investors are optimistic about its long-term prospects.

However, some speculate that the coin could double or triple in value. More explicit regulations and a surge in interest within the crypto space drive this.

Gary Gensler’s Resignation Could bring Bright Future for Crypto ETF Approval

This filing follows similar initiatives by other asset managers, such as VanPresidentanary Capital. These asset managers have also sought approval for their Solana ETF proposals in recent months.

However, the approval process for these new ETFs remains uncertain under the current leadership of the SEC. Currently, Bitcoin is the only cryptocurrency officially recognized aPresidentdity. This leaves investors frustrated due to the unclear regulatory status of other diPresidentets.

The ETF applications have seen a massive wave. The growth was fueled, in part, as the SEC Chair Gary Gensler announced his resignation, effective from January 20, 2025.

With his departure, there is hope that a more crypto-friendly administration could take charge. That increases optimism for projects like a Solana ETF. This shift coincides with the inauguration of President-elect Donald Trump on the same day.

On January 20, 2025 I will be stepping down as @SECGov Chair.

A thread ⬇️

— Gary Gensler (@GaryGensler) November 21, 2024

Under Gary Gensler’s leadership, significant steps were taken to address the risks associated with cryptocurrencies through regulatory actions. The SEC pursued aggressive enforcement measures during his tenure, aiming to manage the potential dangers digital assets pose.

Some view his departure as the start of a potential shift in policy. However, others anticipate that the incoming administration will be more supportive of crypto.

Gensler’s stance on crypto ETFs has been notably cautious. Previous attempts to list Solana ETFs were withdrawn. The reason behind this insiders believe the SEC under his leadership was unlikely to approve such products.

However, with Gensler’s impending exit, the SEC has recently resumed discussions with ETF issuers. That signaled a potential shift in approach.

This development highlighted the prospect of significant regulatory changes in 2025. This could mark a pivotal year for both the cryptocurrency industry and the broader financial markets.

Steps to establish a functional Solana ETF

To launch a functional Solana ETF, several key steps must be followed to secure approval. The exchange must first file a 19b4 filing with the SEC following the issuer’s S-1 application for the listing of the ETF.

The SEC has 240 days to examine the application and reach a determination after acknowledging receipt of the 19b4 filing. Anyone trying to start an ETF must go through this process, even if it does not ensure approval.

The SEC has always been hesitant to approve financial products related to cryptocurrencies. that’s because of worries about market manipulation, illiquidity, and other hazards.

However, recent discussions between SEC staff and issuers suggest a potential shift in the agency’s approach. Industry insiders believe these interactions could increase the likelihood of approval for such applications, especially if the regulatory stance evolves.

If the Solana ETF is approved, it would provide institutional investors with a legitimate channel to invest in Solana. This could help them to contribute to the broader acceptance of blockchain-based financial instruments.

How Different Firms Could Benefit from a Solana ETF?

The race to launch the first Solana ETF is underway. New contenders like Bitwise are entering the field alongside established players such as VanEck and 21Shares. These firms have broght significant market experience and financial resources.

The potential at stake is indicated by this competitive climate. This is the portion of the Solana ETF market where institutional investors may be interested in a newcomer.

With the SEC’s lack of decisive action, the question of which firm will ultimately dominate this emerging space becomes even more critical. Smaller, newer firms like Canary Funds are well-positioned to create innovative ETF products that cater to diverse investor needs.

Some argue that noise trading poses a larger challenge. On the other hand, some believe that established firms like Bitwise and VanEck are better equipped to navigate complex regulatory hurdles.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.