Major Setback For Solana ETFs As SEC Plans To Reject Pending Applications — But There’s A Silver Lining

A new report deals a major blow to the chances of a Solana exchange-traded fund launching on Wall Street soon. Just days after cryptocurrency behemoth Grayscale joined the SOL ETF race, sparking hopes of an impending greenlight, the Securities and Exchange Commission (SEC) has informed at least two prospective would-be ETF issuers that it will reject their applications. SEC To Throw Out SOL ETF Filings Fox Business journalist took to X to reveal that the SEC had informed at least two of the five Solana ETF applicants that the approval process for the form 19b-4 filings would not proceed further. This means the top Wall Street regulator will reject the filings in its anticipated January 2025 decision. While the SEC update indicates a temporary hurdle for SOL ETFs, the anonymous sources told Terrt that the SEC is unlikely to greenlight any new crypto-based exchange-traded funds under the current United States administration. https://twitter.com/EleanorTerrett/status/1864874666445152672 The report from Terrett comes as several asset managers have sought approval for investment vehicles that track Solana’s spot price. As ZyCrypto reported , Grayscale Investments recently filed with the SEC to transform its Solana Trust, which manages over $133 million in assets, into a spot SOL exchange-traded fund. Several other asset managers, including 21Shares , Canary Capital , VanEck , and Bitwise , have also filed paperwork for SOL ETFs. It’s worth mentioning that the SEC previously rejected Cboe BZX’s application for two SOL ETFs due to concerns about Solana’s classification as an unregistered security. All Hope Not Lost For SOL ETFs With the current U.S. SEC chairman Gary Gensler departing next month, there are renewed hopes about potential SOL and other crypto ETFs. Former crypto-friendly SEC commissioner Paul Atkins is set to replace current chair Gary Gensler in January. With Atkins at the helm, there is increasing optimism that more crypto ETFs could hit the market. Moreover, President-elect Donald Trump has appointed venture capitalist David Sacks to oversee crypto policy initiatives and artificial intelligence. Sacks is a known Solana investor. In 2022, he confirmed holding SOL tokens during a talk with fellow VCs regarding their crypto investments. Even more interesting, there are reports that Sacks was among the early buyers of the fifth-largest cryptocurrency. Some believe his involvement in the Trump regime could clear the path for spot SOL ETF approvals next year.