- The U.S. Securities and Exchange Commission (SEC) has made the 19b-4 review timeline irrelevant for new exchange-traded funds (ETFs) by introducing generic listing standards.
- An amended S-1 registration for a potential Solana ETF was filed, moving the fund closer to possible approval.
- Bloomberg analyst Eric Balchunas stated that the odds for SEC approval of the Solana ETF have become almost certain.
- Experts predict a burst of speculative trading around the ETF launch, possibly followed by a “sell the news” correction, as seen with Bitcoin and Ethereum ETF launches.
- Institutions are less likely to invest heavily in a Solana ETF compared to Ethereum, due to existing familiarity and infrastructure with Ethereum’s ecosystem.
On Monday, the SEC shifted the approval process for new crypto exchange-traded funds (ETFs) by adopting generic listing standards, making the previous 19b-4 review period unnecessary. The focus for ETF approvals now moves to the S-1 registration form, which requires a separate sign-off from the Division of Corporation Finance.
Recently, the S-1 application for a potential Solana ETF recorded its fourth amendment, signaling possible imminent approval. Eric Balchunas, a senior analyst at Bloomberg, reported that approval odds for a Solana ETF by the SEC are now essentially certain. In a post on X, he described the chances as “100%” due to the new listing standards, and noted that “the baby could come any day.”
Other experts expressed caution about investor behavior ahead of a Solana ETF launch. Jeffery Ding, chief analyst at HashKey Group, told Decrypt that “a Solana ETF could trigger speculative buying ahead of approval, followed by a potential ‘sell the news’ correction once launched—similar to what we saw with Bitcoin and Ethereum ETFs.”
After spot Bitcoin ETFs launched in the U.S., they saw $12.13 billion in total inflows during the first ten weeks, according to SoSoValue. Ethereum ETFs faced $523 million in outflows at first, but reversed to $3.56 billion in inflows over the next three months.
Ding said it’s unlikely that a Solana ETF would draw more short-term inflows than Ethereum. He explained that institutional investors are more familiar with Ethereum’s structure and risks, and that Ethereum supports core financial tools such as stablecoins and real-world assets, closely tied to the traditional financial industry.
At the time of reporting, Solana traded at about $211.
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