The SEC has put a halt to Solana SOL ETF filings, delaying the method of approval for the brand new exchange-traded funds. The regulator not too long ago raised issues about Solana’s classification as a safety. This led to the withdrawal of 19b-4 filings for Solana ETFs from the Cboe BZX trade. Each VanEck and 21Shares have seen their SOL ETF functions absent.
Solana has been considered because the token more than likely to get the subsequent crypto-based ETF within the US. This yr has already seen Bitcoin and Ethereum get accepted. Nevertheless, it could be completely different this time. Hypothesis has swarmed that SOL may very well be considered as a commodity. Subsequently, making the ETF course of more and more difficult.
The filings would have initiated the regulatory overview for Solana ETFs, which want each the 19b-4 kinds and efficient S-1 registration statements to be accepted. The SEC has made the earlier two crypto ETF filings very troublesome for Ethereum and Bitcoin. Nevertheless, the belongings proceeded to carry out extraordinarily properly following the launch.
SEC Places Way forward for Solana SOL ETFs into Query?
This transfer by the SEC locations the prospect of a SOL ETF within the US into query. The market largely anticipated the product to debut in some unspecified time in the future in 2025. But, which will now not be possible. With Ethereum’s ETF off to a bumpy begin, there could also be many components working towards Solana in relation to ETF approval, primarily the SEC’s opposition.
Solana has witnessed an increase of practically 600% over the previous yr. SOL was buying and selling at a low of $21 only a yr in the past. Now, the asset has beforehand managed to surge past the $200 degree. It has now turn out to be one of many best-performing crypto belongings of 2024 and is predicted to rise extra this yr. The hypothesis round a brand new ETF induced the asset to spike in worth much more, however the newest information from the SEC did the alternative.
SOL is down 3% over the previous week to $143.31. Regardless of its drop in worth and market capitalization, Solana has maintained a ten.05% increase in buying and selling exercise over the past 24 hours. Whereas buyers all in favour of Solana are hopeful that the ETF will nonetheless be launched this yr, the SEC will possible attempt to delay approval till at the least 2025.
