SEC plans to reject spot Solana ETF filings, citing concerns about Solana's security classification.
Grayscale, VanEck, and others face hurdles as SEC tightens its stance on Solana-focused ETF approvals.
Solana ETFs are likely to be delayed until 2025, pending leadership changes at the SEC under a new administration.
According to reports, the U.S. Securities and Exchange Commission (SEC) has made clear to two issuers of Solana ETFs that it plans to reject their applications. The regulatory agency will deny the filings under its current administration, according to FOX Business reporter Eleanor Terrett.
https://twitter.com/EleanorTerrett/status/1864874666445152672 Growing Interest in Solana ETFs
Major asset managers are pushing through for Solana-based investment products. Recently, Grayscale Investments filed to convert its $134.2 million Solana Trust into a spot ETF under ticker GSOL. The filing on Tuesday puts the spotlight on growing demand for Solana focal ETFs.
VanEck, 21Shares, Bitwise, and Canary Capital have also submitted applications for Solana ETFs. These filings highlight the need for bringing Solana based investment opportunities to market.
SEC Concerns About Solana's Security Classification
The SEC's decision appears tied to concerns over Solana's classification as a security. These concerns have previously hindered the approval of Solana-focused ETFs. In August, the SEC formally rejected Cboe BZX’s filings for two Solana spot ETFs, citing similar reasons.
This decision impacts not just Solana-focused ETFs but also other anticipated crypto ETF applications. Products tracking assets like XRP may face similar challenges. The SEC’s current leadership has expressed reluctance to approve crypto ETFs beyond Bitcoin and Ethereum.
Future Prospects for Solana ETFs
Terrett’s report suggests the SEC is unlikely to approve further ETF filings until a leadership change occurs. The incoming administration, expected in 2025, may bring a fresh perspective to crypto ETF evaluations.
Market participants remain cautiously optimistic despite the setbacks. Some speculate that Solana ETFs could still see approvals once the regulatory landscape changes.
The post SEC Set to Reject Spot Solana ETF Applications Amid Regulatory Concerns appeared first on Crypto News Land.
