Crypto exchange-traded product (ETP) giant 21Shares is announcing that it’s pushing European authorities for a more complete regulatory framework.

According to a new announcement from 21Shares, the firm is asking the European Securities and Markets Authority (ESMA) to set aside a regulatory framework for crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds.

21Shares says Europe currently suffers from legal inconsistency between member states, resulting in the allowance of certain UCITS to hold crypto while others have been barred.

The company also argues that a lack of consistency results in investor protection gaps. 21Shares recommends that EMSA establishes clear guidelines to apply across all EU entities.

According to the firm, this would put EU markets in line with Hong Kong and US markets, which have already approved several crypto exchange-traded funds (ETFs).

Says Mandy Chiu, Head of Financial Product Development at 21Shares,

“The current patchwork of regulations is creating confusion and preventing retail investors from accessing the full potential of crypto assets. By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment that is designed for investor protection. At 21Shares, we focus on making crypto products easier, safer, and more conventional to trade—meeting the growing demand from investors who want to include these assets in their strategies.”

“With a unified regulatory stance, Europe can position itself at the forefront of financial innovation. Clear guidance from ESMA would not only promote market stability and investor protection but also encourage further growth and development in the crypto asset space. We believe it’s time to move forward and provide a framework that aligns with Europe’s tradition of supporting innovation and competitive markets.”

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VanEck and 21Shares’ 19b-4 filings for Solana exchange-traded fund (ETF) are no longer available on the Cboe website. Both companies filed S-1 forms for spot Solana ETF in late June after the clarity on approval for nine spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC).

Have VanEck and 21Shares Dropped Plans For Spot Solana ETF?

Solana ETF 19b-4 forms by VanEck and 21Shares appear to have been removed from the Cboe website, according to a post on the X platform on August 17. He shared that the documents SR-CboeBZX-2024-066 and SR-CboeBZX-2024-067 aren’t accessible through direct link. In addition, they are no longer visible in BZX Pending Rule Changes.

VanEck and 21Shares filed 19b-4 applications on July 8, after they revealed their initial plan in S-1 filings in June to offer spot Solana ETFs. However, the U.S. SEC has never issued notices of filings, starting a debate on whether the 19b-4 filings were withdrawn.

The 19b-4 submission is the second step in the ETF process after an S-1 form. It informs the SEC of a proposed rule change by a self-regulatory organization (SRO) such as an exchange. After the 19b-4 filings, the SEC confirms receipt of the filing. It is followed by the opening of a 240 days window in which the regulator makes a decision on the products.

ETF Experts Reacts on the Missing Filings

Scott Johnsson, general counsel at Van Buren Capital, said it is not surprising to him what is happening in the U.S. SEC under Gary Gensler. Johnsson asserts Gensler would have rejected VanEck and 21Shares Solana ETFs after the filings. He is anti-crypto and reluctant to any crypto exchange-traded funds approval.

“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).”

My guess on what is happening is Gary says SOL ETF is DOA under his watch (not surprising). https://t.co/g5Tz8Zjoqh

— Scott Johnsson (@SGJohnsson) August 17, 2024

Nate Geraci, president of ETFStore, confirmed that the ETF 19b-4 filings were removed. He added that Solana ETF will never get approval anytime soon under the current administration.

Meanwhile, SOL price is trading under selling pressure amid the bearishness in the crypto market. The fear and greed index has dropped to a low of 25 (fear) today, creating a panic situation among investors. SOL price is currently trading at $139.51, down 3% in the past 24 hours. The trading volume has dropped more than 20% over the last day.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.