Solana ETF Hits Roadblock With US SEC, But There's a Catch
2024-12-06

The enthusiasm surrounding spot Solana ETF products is dying down under the current leadership of the United States Securities and Exchange Commission (SEC). According to a report from Fox Business Journalist Eleanor Terrett, citing people close to the matter, the market regulator has notified two of the five Solana ETF issuers that it will reject their 19b-4 filings.
Solana ETF prognosis not good in short term
Despite the growing number of Solana ETF applications, many in the industry have maintained skepticism regarding potential approvals. While the update from Terrett places a temporary roadblock on the Solana ETF, the regulator is not ready to entertain any new crypto ETF applications for now.
🚨SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs. 
The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.
Notably, there has yet to be any official rejection of the 19b-4 applications submitted by Bitwise, Canary Capital and 21Shares, among others. With the current U.S. SEC chairman counting down the days to his departure, new possibilities are on the horizon for Solana and crypto ETFs.
The update is already generating commentary on X, with community members puzzled at the resistance of collaboration by the regulator. 
A major conviction for many crypto ETF proponents is that the market is quickly maturing and will benefit from SEC oversight. Thus, many believe the resistance does not align with the current ecosystem progression.
Just matter of time
Paul Atkins, a former pro-crypto SEC commissioner, is set to take over from Gary Gensler in January. With his nomination, there is growing confidence that more proactive crypto policies will emerge.
Beyond Solana ETF products, asset managers have also submitted applications for Litecoin ETFs, XRP ETFs and even Hedera ETFs. These digital currencies boast different market capitalizations, ecosystems and adoption levels.
This uniqueness among the projects underscores why the next SEC administration must consider the filings on a case-by-case basis. In the long term, proponents believe more crypto ETF products will enter the market.