Solana ETF Filings Face Obstacles as SEC Rejection Looms

Spot Bitcoin and Ethereum ETFs have performed an important function in driving widespread adoption by offering a easy means for traders to realize publicity to the 2 largest cryptocurrencies with out the complexities of managing a crypto pockets.

Nonetheless, new reviews counsel that Solana could not comply with this path to accessibility as a result of regulatory obstacles.

Solana ETFs Set to Be Rejected?

Spot Solana ETFs are set to face disappointment, with the US Securities and Trade Fee (SEC) notifying not less than two of the 5 potential issuers in regards to the rejection of their 19b-4 filings.

FOX Enterprise’s Eleanor Terrett confirmed that sources counsel the securities regulator shouldn’t be inclined to approve any new cryptocurrency ETFs underneath the present administration. This strategy aligns with the SEC’s dealing with of Bitcoin ETFs, the place approvals have been coordinated throughout a number of issuers, avoiding selective approval.

Earlier this 12 months, in January, the SEC accredited eleven spot Bitcoin ETFs, adopted by a sequence of spot Ethereum ETFs in July. As such, a Solana ETF would additional diversify the choice of crypto spot ETFs accessible to traders.

Thus far, a number of asset managers have sought to safe approval for Solana-based funding merchandise, the latest being Grayscale. Based on a filing on Tuesday, the crypto asset supervisor is seeking to convert its $120 million Grayscale Solana Belief (GSOL) right into a spot ETF on NYSE Arca,

With this, Grayscale grew to become the fifth asset supervisor to use for a spot in Solana ETF this 12 months. Different giant asset managers, reminiscent of VanEck, 21Shares, Bitwise, and Canary Capital, have equally applied, reflecting vital business enthusiasm amid a market-wide resurgence, with SOL alone rising by over 200% this 12 months.

Nonetheless, issues concerning SOL’s classification persist. The SEC rejected Cboe BZX’s proposals for 2 spot Solana ETFs in August this 12 months, citing doubts over whether or not SOL qualifies as a safety.

Atkins’ SEC Appointment Sparks Hope

The latest appointment of pro-crypto advocate Paul Atkins as SEC chair, nevertheless, has sparked renewed optimism for a extra favorable regulatory atmosphere for digital asset merchandise, together with Solana ETFs.

Nate Geraci, President of the ETF Retailer, echoed this sentiment in a tweet, stating that the SEC won’t approve any ETF filings till Atkins formally takes cost as SEC Chair in January. As the present administration winds down, business veterans anticipate that regulatory modifications, together with potential approvals for crypto ETFs, will solely speed up as soon as new management takes the helm.