While asset manager Vaneck's move to file a SOL ETF has many Solana supporters on high and even prompted a sharp rebound in SOL prices, industry insiders are divided on the SOL ETF's approval.

The founder of Wintermute urges: Don’t be unrealistic

Evgeny Gaevoy, founder of cryptocurrency market maker Wintermute, believes that the possibility of SOL ETF being approved this year is almost zero, and said that submitting the application is more for public relations purposes. And even if the SOL ETF is approved, inflows will be minimal.

My 2 cents:– there is near zero chance SOL ETF will get approved this year (wishful thinking that it will be somehow a priority for Trump admin is rather silly)– once you see how little inflows there will be into ETH ETFs (this year), it will be clear how even less flows SOL…

— wishful cynic (@EvgenyGaevoy) June 27, 2024

In addition, Evgeny Gaevoy also added that although Wintermute is a long-term supporter of SOL and ETH, it still needs to be pragmatic and the adoption of cryptocurrency will take time.

Dragonfly Capital partners don’t think SEC will budge

On the other hand, Haseeb Qureshi, a partner at investment firm Dragonfly Capital, shares the same view:

"This is impossible to accomplish, and I suspect VanEck is accumulating goodwill and laying the groundwork for future launches. But the SEC has made it clear that they consider SOL to be a security. This administration will not budge on this matter."

Haseeb Qureshi believes that ETFs based on BTC and ETH meet the SEC’s market regulatory requirements because the future market for trading these assets is mature.

“Without a listed futures market, they cannot meet market regulatory standards,” said Haseeb Qureshi.

Only by changing dynasties will there be a chance of approval.

On the other hand, James Seyffart, an ETF expert at Bloomberg Intelligence, also said that only after the political parties rotate after the US election and the White House and SEC personnel are reshuffled, there will be a chance of approval, and it will not be possible until 2025 at the earliest. launch, and even then there is no guarantee of passing.

The biggest legal hurdle facing the SOL ETF is that the SEC's enforcement division has repeatedly made clear that SOL is an unregistered security. The SEC's opinion is based on securities laws adopted in the early 1930s and the Howey test, which determines what constitutes an "investment in securities."

This article Is SOL ETF coming? Industry insiders poured cold water: Unless the political parties change, it will not be approved! First appeared in Zombit.