The race to launch the primary US spot Solana
exchange-traded fund (ETF) is gaining momentum. Cboe BZX Change has requested that the Securities and Change Fee (SEC) listing Constancy’s
proposed Solana ETF.
The submitting, made on March 25, provides Constancy to a
rising listing of asset managers trying to carry Solana-based funding
merchandise to the market. Nonetheless, the SEC’s approval stays the ultimate hurdle
earlier than buying and selling can begin.
Cboe’s transfer comes shortly after it filed to listing
one other spot, Solana ETF, sponsored by Franklin Templeton on March 12. A number of
asset managers, together with Grayscale, VanEck, 21Shares, Canary, and Bitwise,
have additionally submitted functions for comparable merchandise.
In the meantime, the Chicago Mercantile Change (CME)
launched Solana futures contracts on March 17, additional indicating
institutional demand for SOL-related monetary merchandise.
Present Solana ETF Panorama
Whereas US buyers at present lack entry to identify
Solana ETFs, derivative-based merchandise have already entered the market. In
March, Volatility Shares launched the primary ETFs offering publicity to Solana
via monetary derivatives.
The Volatility Shares Solana ETF (SOLZ) and the
Volatility Shares 2X Solana ETF (SOLT) enable buyers to realize publicity to
SOL’s value actions, with the latter providing 2x leverage.
The SEC has traditionally been hesitant to approve
altcoin ETFs, however the introduction of spot Bitcoin ETFs earlier this yr
signaled a possible shift in regulatory method.
The SEC’s stance on cryptocurrency ETFs has developed
following a change in administration. Beneath former President Joe Biden, the
company took a tricky stance, launching over 100 lawsuits in opposition to crypto companies.
Nonetheless, following the start of President Donald Trump’s second time period in
January, regulators look like softening their method.
In 2024, the SEC permitted a number of spot Bitcoin ETFs,
paving the best way for additional cryptocurrency-based funding autos. The
resolution on Solana ETFs may mark the subsequent step in broadening entry to
digital asset funds.
Constancy’s Rising Crypto Ambitions
Constancy has been increasing its presence within the
cryptocurrency sector for years. In 2023, the agency launched two spot crypto ETFs: the Constancy Smart Origin Bitcoin Fund (FBTC) and the Constancy Ethereum
Fund (FETH).
With a lot of its purchasers already holding crypto
belongings, Constancy’s push for a Solana ETF aligns with the agency’s long-term
technique. If permitted, the fund would supply buyers with direct publicity to
Solana’s value actions with out requiring them to carry the asset straight.
As institutional curiosity in Solana grows and
regulatory sentiment shifts, the chance of spot Solana ETFs gaining
approval in 2024 seems stronger than ever.
This text was written by Jared Kirui at www.financemagnates.com.
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