After months of anticipation, a key US regulator has taken the first steps that could lead to a Solana ETF approval. This development is fuelling optimism for Solana, as traders hope it will open the door for institutional investments.
On Thursday, February 6, the Securities and Exchange Commission (SEC) acknowledged the filing for the Grayscale Solana Trust for the first time. This is notable, as the agency rejected similar filings under the former Chair, Gary Gensler.
Under the new acting SEC Chair Uyeda, the agency has published the NYSE Arca’s 19b-4 filing for the Grayscale Solana Trust in the Federal Register. Following that move, the SEC opened a 21-day public comment period, a key step toward approval.
After that period, the SEC will decide on the approval of the ETF or request potential modifications of the filings. This could involve multiple extensions, as seen in previous ETF filings. However, a Bloomberg analyst, James Seyffart, pointed out that the final deadline for the decision is around October 11.
Why Markets Are Excited Over a Solana ETF
The SEC’s decision to allow the Grayscale Solana Trust ETF filing is a significant shift in the agency’s policy. As noted by Bloomberg analyst Eric Balchunas, Gensler rebuffed a similar filing six weeks ago. The former SEC Chair viewed most crypto assets, including Solana, as unregistered securities.
The shift in policy is significant, as traders eagerly anticipate ETF approvals. ETFs enable major financial institutions, including hedge funds and pension funds, to invest in crypto. Notably, ETFs are less complex for these institutions to engage with, both in technical and regulatory terms.
Despite Solana’s relatively low price action yesterday, markets anticipate positive momentum from this move. Investors believe ETFs will lead to more institutional investment in crypto, driving prices up. Moreover, this is good news not only for Solana but also for other smaller assets.
The latest SEC decision opens the door for other Solana ETFs and other altcoin ETFs. These filings are ongoing, as CBOE filed four separate applications for XRP ETFs.
