- Constancy joins main firms in pursuing SEC permission for a Solana ETF.
- Altcoin ETFs like SOL, DOGE, and ADA purchase momentum within the US.
Cboe BZX Change filed a 19b-4 submitting with the U.S. Securities and Change Fee (SEC) to listing Constancy’s spot Solana (SOL) exchange-traded fund (ETF). The submitting, initiated on March 25, follows the registration by Constancy of a Solana belief in Delaware, one other regulatory milestone.
Constancy is amongst an increasing listing of asset managers looking for to launch spot SOL ETFs. Different firms with such filings embody VanEck, Grayscale, 21Shares, Bitwise, and Franklin Templeton. Analysts count on inflows of $3 billion to $6 billion if the ETF is launched, likening its market potential to Bitcoin (BTC) and Ethereum (ETH) ETFs.
Demand for Solana-based funding merchandise is rising on the again of Solana futures contracts, which debuted on the Chicago Mercantile Change (CME) on March 17. First-day buying and selling was $12.3 million, decrease than Bitcoin’s $102.7 million and Ethereum’s $31 million however consistent with market cap-adjusted expectations.
Constancy’s Spot Solana ETF Advances With SEC Submitting
Volatility Shares just lately launched Solana futures ETFs on March 20, expressing curiosity in Solana ETFs. These are the Volatility Shares Solana ETF (SOLZ) and the 2X leveraged Solana ETF (SOLT). Analysts view these launches as a normal for future spot market demand.
Competitors between ETF issuers is growing. Cboe’s latest software follows its March 12 submitting to listing Franklin Templeton’s spot Solana ETF. Corporations have additionally requested for altcoin ETFs, together with Litecoin (LTC), XRP, Cardano (ADA), Polkadot (DOT), and even Dogecoin (DOGE).
Along with cryptocurrency ETFs, Canary Capital has additionally filed for an NFT-tracking ETF to present shareholders publicity to the PENGU token and Pudgy Penguins NFTs. That is an growth of the ETF market as asset managers proceed to seek out methods round SEC guidelines and produce buyers to digital asset-backed funds.
The SEC’s technique in regulating cryptocurrency has tremendously shifted in the course of the administration of President Donald Trump. Whereas the SEC, in the course of the administration of former President Joe Biden had launched over 100 enforcement actions in opposition to crypto corporations, the regulator has since grow to be extra lenient. This was seen with the 2024 approval of spot Bitcoin and Ether ETFs, which opened the door for future approval of different altcoin ETFs.
Issuers are usually not solely positioning themselves for regulatory approval but additionally positioning themselves for modification of present ETF constructions, together with staking options, in-kind redemptions, and derivatives-based methods. These modifications would additional embed cryptocurrency into mainstream monetary markets.
Because the political and regulatory atmosphere is shifting beneath President Donald Trump’s watch, everybody within the trade is ready with bated breath to see what the SEC has in retailer relating to these new makes use of. If licensed, Constancy’s spot Solana ETF can lead the cost to wider utilization of altcoin ETFs for Individuals.