SEC pauses Solana ETF approval, raising concerns about its classification as a security.
Market experts doubt Solana ETFs will get approval under the current U.S. administration.
VanEck argues SOL should be treated like Bitcoin and Ether for ETF authorisation.
The U.S. Securities and Exchange Commission has suspended the approval process for Solana exchange-traded funds (ETFs) because of concerns over whether the coin is a security. The Cboe BZX exchange pulled related paperwork after discussions with the SEC, which has delayed progress. This decision puts the future of Solana ETFs in question.
Regulatory Challenges and Filing Issues
The SEC’s decision to stop the filings has added uncertainty to the approval process. To move forward, ETFs need both the 19b-4 forms and S-1 registration statements approved. VanEck’s registration for its Solana ETF is still visible on the SEC’s system, while 21Shares’ registration has become harder to find, though it is still available through a direct link. These differences show the obstacles Solana ETFs are facing.
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The SEC is taking a cautious approach to Solana’s status. The removal of the 19b-4 submissions means the SEC is looking more closely at Solana. These filings are necessary for ETF approval, so their absence indicates a delay. The limited visibility of the S-1 forms also highlights the difficulties for issuers in getting through the regulatory process.
Market Reactions and Expert Opinions
The market is uncertain about the chances of Solana ETFs being approved under the current administration. Nate Geraci, president of The ETF Store, thinks the Biden Administration might hesitate to approve these funds. James Seyffart, an ETF expert from Bloomberg Intelligence, said Solana ETFs might only get approved in 2025 if there is a change in administration.
The SEC sees Solana as a security, which creates problems for ETF approval. VanEck, however, argues that Solana should be treated like Bitcoin and Ether, which are traded as ETFs. The debate about Solana’s status shows the broader uncertainty in how cryptocurrencies are classified and how this affects financial products like ETFs.
What’s Next for Solana ETFs?
There is still a chance for Solana ETFs to be approved. Sources say new declarations or changes to the 19b-4 forms might be made to argue that Solana is not a security.
Businesses like 21Shares are committed to offering access to crypto in the U.S., but the SEC’s decisions will play a key role in the future of Solana ETFs. As the situation develops, those in the industry will be watching the SEC’s conduct closely. The delay in SOL ETF applications shows the challenges of dealing with cryptocurrency-based financial products. The debate over Solana’s classification continues, leaving the future of these ETFs uncertain.
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