Regulatory Body SEC Declines Two Proposed Solana ETFs, Citing Unmet Criteria
In a recent development, the U.S. Securities and Exchange Commission (SEC) has announced rejections for at least two applications for Solana spot exchange-traded funds (ETFs). The rejections come as no surprise, as the consensus among sources is that the SEC won't entertain any new crypto ETFs under the current administration.
Fox Business journalist Eleanor Terrett reported the news, citing insider sources. However, none of the companies mentioned—VanEck, 21Shares, Bitwise, Canary Capital, and Grayscale Investments—have officially confirmed Terrett's statement at the time of this publication.
The five firms had filed applications for spot Solana ETFs, joining a growing list of companies seeking to tap into the cryptocurrency market through ETFs. Despite the rejections, it's worth noting that none of these applicants have had their 19b-4 applications rejected by the SEC under the current administration; instead, the SEC has delayed or extended the decision deadlines for these ETF applications, with final decisions expected by October 10, 2025.
The price chart for Solana (SOL) shows high volatility with a slight downward trend. Despite the news of the rejected Solana spot ETF applications, Solana exhibited minimal reaction, which might be due to community optimism surrounding the potential appointment of a new SEC chair.
The anticipated new SEC chair is expected to reform the agency's stance on cryptocurrencies. Further details on the anticipated changes in leadership at the SEC are forthcoming. It's important to note that further rejections of pending applications for cryptocurrency ETFs are possible under the current administration.
Interestingly, Terrett also noted that eleven products for spot Bitcoin ETFs were launched on the same day in the past, raising hopes for a potential surge in crypto ETF approvals in the future. The SECGov, the Twitter handle for the U.S. Securities and Exchange Commission, remains silent on the matter, maintaining its stance on cryptocurrency regulations.
As always, investors are advised to carefully consider their investment decisions and stay informed about the latest developments in the cryptocurrency market.
