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- Fox Business journalist Eleanor Terrett reported on X that the SEC has communicated to the prospective issuers that their 19b-4 filings for Solana ETFs will not be approved.
- The SEC has maintained a cautious approach toward cryptocurrency ETFs, reflecting broader regulatory concerns within the industry.
According to Eleanor Terrett, a journalist for Fox Business, the Securities and Exchange Commission (SEC) has informed at least two out of five prospective issuers that their 19b4 filings for Solana spot ETFs are likely to be rejected. This decision appears to align with the SEC’s broader cautious approach to crypto-related investment products. Exchange-traded funds (ETFs) have become popular among investors looking to gain exposure to various asset classes, including cryptocurrencies. A spot ETF allows investors to buy shares that are directly tied to the price of a particular asset, in this case, Solana (SOL).
The journalist took to X to share this information, indicating that the SEC’s current stance could stifle further innovation in cryptocurrency investment offerings. As the SEC continues to scrutinize the cryptocurrency sector, the rejection of Solana spot ETF filings may serve as an indication of the regulatory body’s posture towards all crypto ETFs under the current administration.
The potential rejection of Solana spot ETFs raises several important implications. Firstly, it highlights the ongoing regulatory challenges that digital assets face in the United States. Additionally, the decision by the SEC could lead to increased volatility in the price of Solana and other cryptocurrencies as market participants react to the news.
Insights from Industry Analysts on the Future of Solana ETFs
Analysts, including James Seyffart, have forecasted that the much-anticipated Solana ETF may not see the light of day until 2025, especially with the current leadership in the SEC. This move has been expected by professionals in the crypto sector, who believe that no significant advancements will occur until Paul Atkins takes over as US SEC Chair in January, replacing Gary Gensler.
In response to the situation, ETF Store President Nate Geraci has noted
It’s not surprising, but we won’t see any progress on spot crypto ETF filings until new leadership is established. It’s a lame duck period.
Despite this outlook, the recent advancements in regulatory filings, along with ongoing ETF applications for other digital assets such as Hedera, Litecoin (LTC), and Ripple(XRP), indicate a burgeoning potential for growth in the cryptocurrency market. Despite the SEC’s rejection of Solana ETFs, the future remains bright for the cryptocurrency market. The landscape is expected to shift with Paul Atkins, who is slated to take office as the new SEC Chair, promising a more favorable approach toward digital assets.
Interest from institutional investors in Solana has been on the rise; this is evident through multiple ETF filings that signal increasing confidence in blockchain-based investment opportunities. Firms such as VanEck, 21Shares, Canary, and Bitwise submitted their ETF applications for SOL.
As we earlier reported, Grayscale has also initiated an application to transform its Solana Trust Fund into an ETF, with its review deadline falling just two days prior, on January 23, 2025. The price of SOL is currently at $236, reflecting a decline of 0.21% over the past 24 hours and a decrease of 1.53% over the last week.
