Solana ETF Approval Faces Major Setback as SEC Signals Rejections

Recent reports suggest that the chances of the US SEC approving a Solana (SOL) exchange-traded fund (ETF) anytime soon have significantly dropped.

Fox Business correspondent Eleanor Terrett revealed that the SEC has informed at least two of the five firms filing for Solana spot ETFs that their applications will be rejected. The SEC’s cautious approach is unlikely to expand beyond Bitcoin and Ethereum ETFs under the current administration.

This comes as a surprise after recent reports indicated that negotiations for Solana ETFs were progressing well. With the SEC’s latest stance, it seems new crypto ETFs may not gain approval soon. Solana joins other altcoins like XRP and Litecoin, whose ETF applications are still pending.

Despite growing institutional interest, with firms like Bitwise, Canary Capital, and Grayscale filing for Solana ETFs, regulatory uncertainty remains a hurdle. As a result, approval odds have plummeted to as low as 3% in recent months. Analysts see Solana ETFs as vital for increasing liquidity and broader investor access, but the SEC’s strict stance continues to delay progress.

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However, with potential changes in political leadership, experts believe a shift in regulatory policies could pave the way for Solana and other altcoin ETFs in the next few years. For now, Solana continues to demonstrate strong ecosystem growth, attracting institutional interest due to its low fees and high throughput.

Alexander Zdravkov