Amid strong growth in the Solana network, the SEC is poised to reject applications for SOL cash ETFs. Eleanor Terrett of Fox News reports that at least two of the five issuers have already been notified of the impending decision.
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Solana ETFs, SEC prepares collective rejection of applications
The Securities and Exchange Commission (SEC) takes a firm stance on Solana ETFs at a time of unprecedented market momentum. This decision comes after a series of filings initiated by the biggest names in finance.
VanEck led the way in June with the first 19b-4 application, quickly followed by 21Shares and Canary Capital. The arrival of Bitwise and Grayscale brought the total number of issuers to five. One of the reasons for this rush is the exceptional performance of the network, which has a total locked-in value of $9.2 billion and dominates 45% of worldwide DEX activity.
Despite these promising indicators and strong interest from institutional investors, the SEC remains adamant, as reported by Eleanor Terrett, Fox News journalist.
The consensus is that the SEC will not accept any new crypto ETFs under the current administration.
This news comes against a backdrop in which SOL, Solana’s native cryptocurrency, is struggling to regain its all-time high of $264.50.
A collective regulatory approach in question
The SEC’s strategy for crypto ETFs appears to be modelled on the Bitcoin model. The regulator favors a global rather than individual approach, as illustrated by the simultaneous launch of Bitcoin ETFs.
Although the regulator’s current stance limits immediate prospects, issuers retain the option of submitting new, tailored applications. The industry is already looking to the future, paving the way for Ethereum ETFs with staking functionalities planned for 2025.
This comes at a pivotal time for the crypto market, where growing institutional adoption is coming up against persistent regulatory challenges.
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