- Solana lost its bullish momentum in the last few months.
- SOL’s decline coincided with the Solana ETF application withdrawals.
- Optimists think SOL’s decline is a mere consolidation.
Solana’s ambitions for an ETF have dimmed in recent months, mirroring the broader crypto market’s struggles to maintain upward momentum. However, the lack of progress on a Solana ETF is particularly concerning, given the altcoin’s previous rally and the fading impulse ETF attempts they do not see actualizing.
ETF Hurdles and Market Realities
Bloomberg ETF analyst James Seyffart outlined the challenges facing a potential Solana ETF. According to Seyffart, the Solana ETF issuers will file their prospectus and go through the corporate finance division to get approved. However, he noted that the issuers must get the “19 befores.”
The recent withdrawal of Cboe’s “19 befores” filings for Solana ETFs further underscores the regulatory hurdles. Seyffart speculates that the SEC’s classification of Solana as a security in various litigations may have influenced this decision.
Read also: Regulatory Pause on Solana ETFs: Spotlight Shifts to MEEK Memecoin
Sui Chung, CEO of Kraken-owned index provider CF Benchmarks, recently stated that Solana ETFs will not happen. At best, he thinks that even if it does, a Solana ETF will not launch on a basis similar to that of Bitcoin and Ethereum. Chung’s reason for not believing in the realization of a Solana ETF is that no notable, regulated Solana futures markets currently exist.
Comparing Solana to the other existing crypto ETFs, Chung highlighted that Bitcoin and Ethereum were listed on the CME, the world’s largest derivatives market, years before the SEC approved their ETFs. The expert affirmed that both the Bitcoin and Ethereum futures did not have disorders in their contracts, making it inevitable for the SEC to approve their ETFs.
Notably, Cboe’s Solana ETF-filing withdrawal coincided with the altcoin’s recent struggles. SOL’s attempt to climb above $200 has met repeated resistance since it did so in March.
Read also: Polygon & Solana Face Key Support Levels: Will They Hold or Fold?
Solana’s price has faced significant resistance in its attempts to climb above $200. As of press time, SOL is trading at $129.34, a 25% drop over the past two weeks.
Despite the current challenges, Solana supporters view this as a period of price consolidation. They believe the altcoin is poised for a strong rebound once the broader crypto market regains its bullish momentum.
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