Fox Business: SEC Set to Reject Spot Solana ETFs

Solana and XRP ETFs: Investor Interest and SEC’s Response

With the growing interest in cryptocurrency ETFs, Solana and XRP have become prominent candidates for future spot ETFs. Many investors anticipated that these altcoin ETFs would follow in the footsteps of Bitcoin and Ethereum ETFs, both of which have gained significant traction since their approval. However, reports indicate that the SEC is taking a cautious stance on approving new cryptocurrency ETFs, particularly for Solana.

According to FOX Business reporter Eleanor Terrett, the SEC has notified at least two applicants seeking to launch spot Solana (SOL) ETFs that their 19/b-4 filings will be rejected. This move has raised concerns among market participants, as many believed the SEC would approve these altcoin ETFs soon.

Terrett further revealed that sources within the SEC have indicated that no new cryptocurrency ETF applications will be approved during the current administration. This news has sparked speculation about the future of cryptocurrency ETFs under the leadership of current SEC Chairman Gary Gensler.

Implications for the Cryptocurrency ETF Market

This development regarding Solana ETFs has left senior analysts expecting little movement until January 2025 when a new SEC Chairman, Paul Atkins, is set to take office. Speaking about the Solana ETF situation, Nate Geraci, President of the ETF Store, commented:

“Not surprising, but there will be no movement on spot crypto ETF applications until there is a new SEC chairman… Lame duck.”

With the SEC’s reluctance to approve new cryptocurrency ETFs under the current administration, many investors are now shifting their expectations to a potential shift in policy once Paul Atkins takes over. As a result, the market may experience a lull in ETF approvals until a new leadership approach is implemented.

Current Status of Solana

Despite the SEC’s hesitancy, Solana (SOL) continues to perform well in the market. Currently trading at $238, Solana has maintained a steady position among the top cryptocurrencies, largely driven by its strong blockchain technology and growing ecosystem. However, until regulatory clarity is achieved, Solana’s ETF prospects remain uncertain.

Conclusion

The rejection of Solana ETF applications by the SEC highlights the ongoing regulatory challenges faced by the cryptocurrency industry. With no new ETF approvals expected under the current SEC administration, market participants will likely have to wait until January 2025, when Paul Atkins is set to become the new SEC Chairman. As the cryptocurrency space continues to evolve, investors and stakeholders will be closely monitoring regulatory developments and the future of altcoin ETFs like Solana and XRP.