- SEC to reject 19b-4 filings for Solana spot ETFs, signaling continued regulatory resistance.
- Multiple asset managers, including Grayscale, seek Solana spot ETF approvals amid delays.
- Solana (SOL) sees a 2.21% price increase, maintaining strong market position despite uncertainty.
The U.S. Securities and Exchange Commission (SEC) announced it will reject the 19b-4 filings for Solana ETFs submitted by two of the five applicants.
According to Fox Business journalist Eleanor Terret’s report, the SEC’s position suggests the regulatory body remains unwilling to approve new crypto ETFs under the current administration. Despite growing demand for crypto ETFs, the SEC continues to pose a barrier.
Read also: Canary Capital Applies for Solana ETF, Challenging SEC Stance
Terret stated that the SEC is unlikely to approve only one or two Solana ETFs while leaving the others in limbo. She pointed to the approval of Bitcoin ETFs, noting that 11 launched at once when they received approval.
Regulatory Resistance to Crypto ETFs Continues
The news comes as several asset managers, including Grayscale Investments, VanEck, 21Shares, Bitwise, and Canary Capital, filed applications for Solana-based investment products. Grayscale requested approval to convert its $134.2 million Solana Trust into a spot ETF under the ticker GSOL.
However, the SEC’s actions suggest approvals for crypto-related investment products will remain on hold until new leadership takes over. This delay is expected to continue until Paul Atkins becomes SEC Chair in January 2025, with industry analysts predicting no changes until then.
Industry Outlook and the SEC’s Future Actions
Industry analysts, including Bloomberg’s James Seyffart, agree that a Solana spot ETF is unlikely before 2025. Seyffart implies that a change in the White House administration and a shift in SEC leadership may be necessary for the approval of Solana-related ETFs.
Until then, the Solana community, along with asset managers, must face the uncertain regulatory landscape with patience, awaiting further developments from the SEC.
Solana’s Market Position and Price Movement
Despite the legal uncertainty, Solana’s market performance remains strong. Solana (SOL) saw a 2.21% price increase over the previous day, currently trading at $239. The cryptocurrency’s market capitalization is $113.60 billion, with an 18.07% increase in its trading volume, reaching $8.87 billion.
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