SOL ETF application failed
Bloomberg ETF analyst Eric Balchunas said on the X platform that the Solana ETF application submitted by CBOE failed to pass the second step in the SEC review process, and the SEC did not confirm it, resulting in the application being directly "declared dead". As a result, the exchanges have withdrawn their 19b-4 applications, although the issuer's S-1 form remains valid. Unless there is a change in the leadership of the SEC, the chances of the application being approved are extremely slim.
The potential benefits of the Solana ETF include providing a more accessible investment tool for investors who want to get exposure to Solana without having to buy and manage cryptocurrencies directly, which may increase demand and liquidity for Solana. However, the SEC has historically been cautious about approving cryptocurrency-based ETFs, mainly due to concerns about market manipulation and Solana's lack of a regulated futures market. In addition, Solana's past network outages may raise more concerns about its reliability and stability, which may affect the SEC's decision.
