The SEC has put a halt to Solana SOL ETF filings, delaying the process of approval for the new exchange-traded funds. The regulator recently raised concerns about Solana’s classification as a security. This led to the withdrawal of 19b-4 filings for Solana ETFs from the Cboe BZX exchange. Both VanEck and 21Shares have seen their SOL ETF applications absent.
Solana has been viewed as the token most likely to get the next crypto-based ETF in the US. This year has already seen Bitcoin and Ethereum get approved. However, it may be different this time. Speculation has swarmed that SOL could be viewed as a commodity. Therefore, making the ETF process increasingly complicated.
The filings would have initiated the regulatory review for Solana ETFs, which need both the 19b-4 forms and effective S-1 registration statements to be approved. The SEC has made the previous two crypto ETF filings very difficult for Ethereum and Bitcoin. However, the assets proceeded to perform extremely well following the launch.
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SEC Puts Future of Solana SOL ETFs into Question?
This move by the SEC places the prospect of a SOL ETF in the US into question. The market largely expected the product to debut at some point in 2025. Yet, that may no longer be likely. With Ethereum’s ETF off to a bumpy start, there may be many factors working against Solana when it comes to ETF approval, primarily the SEC’s opposition.
Solana has witnessed a rise of nearly 600% over the past year. SOL was trading at a low of $21 just a year ago. Now, the asset has previously managed to surge beyond the $200 level. It has now become one of the best-performing crypto assets of 2024 and is expected to rise more this year. The speculation around a new ETF caused the asset to spike in price even more, but the latest news from the SEC did the opposite.
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SOL is down 3% over the past week to $143.31. Despite its drop in price and market capitalization, Solana has maintained a 10.05% boost in trading activity over the last 24 hours. While investors interested in Solana are hopeful that the ETF will still be launched this year, the SEC will likely try to delay approval until at least 2025.