Solana ETF forms have been removed from the Chicago Board Options Exchange (Cboe) website, causing speculation about a potential delay in their launch.

VanEck and 21Shares were the only two companies to file applications for SOL ETFs, leading many to believe it would follow Bitcoin and Ethereum as the next crypto-based financial instrument to hit the market.

Solana ETF Prospects Diminish Following Cboe Move

Recent reports indicate that Forms 19b-4 for VanEck and 21Shares Solana ETFs were removed from the Cboe website following their July 8 submissions.

“Documents SR-CboeBZX-2024-066 & SR-CboeBZX-2024-067 aren’t accessible anymore via direct link, and are no longer visible in BZX Pending Rule Changes,” one X user noted.

Cboe Global Markets filed its request to list Solana ETFs soon after VanEck and 21Shares submitted their applications. Alongside the filing, Cboe invited public comments, indicating strong support for Solana’s ETF entry. However, the applications have since been removed from the Cboe website without any formal withdrawal notices from the applicants. 

Read more: Solana ETF Explained: What It Is and How It Works

President of the ETF Store, Nate Geraci, interpreted the recent developments as confirmation that a Solana ETF will not happen under the current administration. Scott Johnson, a finance lawyer, remarked that Gary Gensler, chair of the US Securities and Exchange Commission (SEC), means to say that SOL ETF is DOA (dead on arrival) under his watch.

“Instead of running through the full 19b-4 process, I’m assuming Gary notified CBOE that these SOL apps were improperly filed as Commodity-Based Trust Shares (because he thinks SOL isn’t a commodity), which obviates the need for the SEC to provide a formal written disapproval order (that is reviewable as a final agency action),” Johnson wrote.

The sentiment arises as the US SEC has yet to formally publish its own notice. Notably, the regulator never issued Notices of Filing for these applications either. In a similar scenario, the SEC had initially considered denying Ethereum (ETH) ETF applications before ultimately making its decision on July 23.

However, in the case of ETH ETFs, the SEC had already initiated the 19b-4 process, requiring the regulator to eventually issue a formal approval or disapproval. In a bullish outcome for crypto, they opted for approval.

“Issuers wanting to file for a SOL ETF and get a fair 19b-4 hearing will now likely need for the exchange-related enforcement actions to be completely resolved first,” Johnson speculated.

SOL ETF Approval Remains Hopium

In a recent interview, SEC Commissioner Hester Pierce said the regulator needs more convincing before green-lighting a Solana ETF. Amidst questions about what regulators think is a security and not, Solana must meet the SEC’s strict regulatory requirements.

These include compliance with financial regulations, anti-money laundering laws (AML), and know-your-customer (KYC) protocols. It must also demonstrate strong market demand, liquidity, and secure custody solutions.

Indeed, BeInCrypto reported that Solana ETF approval will not be smooth. Beyond regulatory concerns and market manipulation fears, network reliability doubts must be considered.

“Solana has experienced several severe downtime incidents, and even the entire blockchain network has rolled back transactions or been unavailable for more than 24 hours. SOL issuers may need to prove that the Solana network is mature and stable enough and that the probability of similar incidents is ‘low enough for investors to accept’ to protect investors’ rights and interests better,” Head at BloFin Research & Options Griffin Ardern told BeInCrypto.

Read More: What Is Solana (SOL)?

One factor that could favor Solana is its success in global markets such as Switzerland, Canada, and Brazil. In the face of existing challenges, a positive outcome in these markets could strengthen Solana’s case for ETF approval. A demonstration that Solana can operate successfully within regulated environments globally could support the case for US approval.

Companies like Valkyrie Investments and Bitwise Asset Management have already expressed interest in filing for a Solana ETF. For BlackRock, however, skepticism abounds, with the asset manager’s digital asset head, Robert Mitchnick, citing investability concerns, market cap, and maturity differences. BlackRock’s ETF and Index Investments CIO Samara Cohen also shot down the prospects of a Solana ETF.

Meanwhile, VanEck’s head of research, Mathew Sigel, believes the existence of an Ethereum ETF qualifies Solana for the same market. This is based on the assumption that the same qualities that qualify ETH as a commodity also apply to SOL.