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SEC Expected to Block Solana ETFs
The SEC is reportedly set to reject applications for spot Solana (SOL) exchange-traded funds (ETFs), according to Fox News reporter Eleanor Terrett. On December 6, she revealed that at least two out of five applicants have been informed about the likely rejection, suggesting the agency isn’t open to approving new crypto ETFs under the current administration.
Companies Racing for Approval
Big names like VanEck, 21Shares, Bitwise, and Grayscale have submitted their proposals, hoping to give investors a way to directly invest in Solana. VanEck was the first to apply back in June, with others following soon after.
To get approval, these firms filed a formal application called a 19b-4, which outlines how the ETF works and ensures it complies with financial rules.
A Change in Leadership Could Shake Things Up
Although rejections seem imminent, the incoming administration might change the SEC’s stance. President-elect Donald Trump has chosen crypto advocate Paul Atkins to take over from current SEC Chair Gary Gensler, a move that could bring more crypto-friendly policies.
Following the Bitcoin ETF Playbook
Terrett hinted that, if approved, Solana ETFs might be rolled out in a coordinated fashion, much like Bitcoin ETFs were. Back then, the SEC approved 11 Bitcoin ETFs on the same day to maintain a level playing field.
Crypto Industry Preparing for the Future
Trump’s win has sparked a rush for crypto-based products on Wall Street. Bitwise recently applied for a fund tied to its 10 Crypto Index, and firms are already looking forward to regulated Ethereum staking options by 2025.
