Simply put
- The SEC’s new general listing standards have altered the approval process, making the previous 19B-4 review timelines less relevant, now focusing on S-1 registrations.
- Bloomberg analyst Eric Balknas noted that Solana has filed its fourth amendment for the S-1, hinting that approval might be on the horizon.
- While the Solana ETF could lead to speculative buying, it may also experience a “sell the news” reaction, similar to past scenarios with Bitcoin and Ethereum, according to reports.
The US Solana Exchange Sales Fund appears to be nearing its launch.
Bloomberg’s Eric Balknas mentioned on Monday that the likelihood of approval from the SEC has markedly increased.
He stated, “Honestly, the odds feel like 100%. The new listing requirements render the 19B-4 process and its timing nearly meaningless.”
Previously, filing a 19B-4 initiated a statutory review process, which could take up to 240 days for the SEC to either approve or deny the proposed ETF.
However, with the recent approval of the general listing criteria earlier this month, that timeline has become almost irrelevant, pushing the future of new ETFs to depend more on S-1 registration statements, which need additional approval from the corporate finance department of the SEC.
Balknas has noted, “The S-1 is simply waiting for the official nod from Corp Finance, and they’ve just submitted Solana’s fourth revision. It could happen any time now.”
“Speculative” trading
Jeffery Ding, chief analyst at Hashkey Group, commented that the Solana ETF might trigger speculative buying leading up to approval, followed potentially by a correction once the news breaks—similar to what happened with Bitcoin and Ethereum ETFs.
The US Spot Bitcoin ETF has amassed a significant flow of $12.13 billion within its initial ten weeks.
On the other hand, Ethereum ETFs have seen about $5.3 billion in outflows, despite being the second-largest cryptocurrency by market cap. Nevertheless, it experienced a revised inflow of $3.56 billion over the following three months.
When asked whether Solana ETFs might attract more investments than Ethereum, Ding expressed skepticism: “Not likely in the short term.”
He added, “Institutional investors have a clearer grasp of Ethereum’s asset traits and the risks tied to them. Ethereum’s ecosystem supports real-world assets and critical financial infrastructure, like Stablecoin issuance, which connects closely with traditional finance.”
According to Coingecko data, Solana’s price stands at $211.17, reflecting less than a 1% change for the day.
