- Bitwise files for Solana ETF as SOL nears all-time highs, joining VanEck and 21Shares in the race.
- Regulatory uncertainty around Solana’s security status may impact ETF approval and fund structure changes.
- Solana’s fast, low-cost blockchain boosts investor interest, driving competition among ETF asset managers.
Bitwise, a cryptocurrency asset management company, has applied for a Solana exchange-traded fund with the Securities and Exchange Commission in the United States. The company's move highlights Solana's increasing market appeal as it approaches record pricing levels.
The filing, made in Delaware on November 21, took place after Bitwise established a trust entity for the fund in October. The trust will be administered by Bank of New York Mellon (BNY). If approved, the ETF would provide investors with direct exposure to Solana.
Competing Proposals from Other Asset Managers
Bitwise joins other companies, including VanEck and 21Shares, in pursuing Solana ETFs. VanEck filed its application in June, intending to launch the first spot Solana ETF in the United States. 21Shares soon followed, submitting its own proposal to track Solana's performance on the Cboe exchange.
The designation of Solana as a security by the SEC is still a contentious matter. The SEC first classified Solana and other cryptocurrencies as securities in its lawsuits against Binance and Coinbase. A new filing in the case, however, suggests that it is pausing its pursuit of a final decision over Solana's status.
Regulatory Uncertainty Looms Over Approval
Legal experts stress that Solana is still not formally a non-security, even with the change. Bitwise highlighted this uncertainty in its filing, mentioning potential changes to its fund structure if Solana is declared a security. To comply with securities rules, these modifications may involve reorganization, better disclosures, or even liquidation.
VanEck believes that Solana, like Bitcoin and Ethereum, should be classified as a commodity. Meanwhile, investors are awaiting clarification on Solana's regulatory status and the potential impact on new ETFs.
The SEC's approval process for cryptocurrency ETFs has been very active in recent months. Bitwise’s Bitcoin and Ethereum ETFs are already trading, adding credibility to its latest filing. However, Solana ETFs face unique issues due to regulatory oversight and changing market conditions.
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