The U.S. SEC is reportedly poised to reject applications for spot Solana (SOL) exchange-traded funds (ETFs). According to FOX Business journalist Eleanor Terrett, the regulator has informed at least two prospective ETF issuers that their 19b-4 filings will not receive approval.
Industry insiders believe the SEC is unlikely to greenlight any new cryptocurrency ETFs under the current administration, despite increasing demand for such investment products.
Regulatory Pushback Amid Growing Interest
The SEC’s stance comes at a time when multiple asset managers are seeking to introduce Solana-based ETFs to the market. Greyscale Investments has submitted a request to turn its $134.2 million asset management company, the Solana Trust, into a spot ETF with the ticker GSOL.
Applications for comparable Solana ETFs have also been submitted by other companies, including as VanEck, 21Shares, Bitwise, and Canary Capital. The industry’s larger attempt to increase investment opportunities in the bitcoin field is reflected in these filings.
However, sources suggest the SEC remains hesitant to approve these applications, citing potential concerns over market manipulation and investor protection. This resistance is wider than Solana-based products, the regulator has also held back on approving ETFs tied to other cryptocurrencies like XRP and newer crypto assets beyond Bitcoin and Ethereum.
Solana Price Actions
Despite the regulatory hurdles, Solana’s price has shown resilience. As of the latest data, SOL is trading at $238.66, up 1.88% in the past 24 hours. The price movement suggests that investor confidence in Solana remains steady, even as the fate of spot ETFs hangs in the balance.
The SEC’s cautious approach contrasts with the optimism among crypto industry participants, particularly in light of recent leadership changes.
President-elect Donald Trump’s appointment of David Sachs as the White House’s AI and crypto czar has sparked hope for a more crypto-friendly regulatory environment.Â
Industry stakeholders closely watch how this shift might influence the SEC’s policies in the coming months.
Broader Implications for the Crypto Market
The SEC’s decision on Solana ETFs is part of a larger debate surrounding the regulation of cryptocurrency investment products. While ETFs have been hailed as a gateway for mainstream investors to enter the crypto market, regulatory resistance has slowed their adoption in the United States.
Grayscale’s recent success in challenging the SEC’s rejection of its Bitcoin ETF application has fueled optimism among some asset managers. However, the Solana ETF rejections highlight the persistent regulatory hurdles that newer cryptocurrencies face.