As the cryptocurrency market evolves, the U.S. Securities and Exchange Commission (SEC) remains a key player in determining the future of crypto-focused exchange-traded funds (ETFs). Recently, reports surfaced that spot Solana ETFs could face significant delays in gaining approval, presenting a major roadblock for issuers and investors.
According to sources cited by Eleanor Terrett of Fox Business, the SEC has informed issuers that no new cryptocurrency ETF applications will be reviewed until President-elect Donald Trump takes office in January 2025. This development leaves major players like VanEck, 21Shares, Bitwise, Canary Capital, and Grayscale in limbo.
Progress Stalled Despite Positive Dialogue
In late November, optimism was high as several issuers reported progress with their spot Solana ETF applications. Feedback from the SEC and discussions around advancing Form S-1 documents (a requirement for securities registration) suggested forward momentum. However, recent reports indicate that the 19b-4 filings, which propose rule changes for ETF listings, are now on hold.
Broader Implications for Crypto ETFs
This delay comes at a time when the cryptocurrency ETF market is booming. Spot Bitcoin ETFs, which launched earlier this year, have attracted $109 billion in assets, surpassing the holdings attributed to Bitcoin’s creator, Satoshi Nakamoto. Similarly, spot Ethereum ETFs have gained traction, building on the success of Bitcoin ETFs and strengthening the case for cryptocurrency investment vehicles.
While issuers like WisdomTree and others are keen to expand their crypto product offerings to include assets like XRP and stablecoins, the regulatory bottleneck could slow broader adoption. Notably, Wall Street giants like BlackRock and Fidelity have refrained from venturing into non-Bitcoin or Ethereum ETFs, likely due to these regulatory uncertainties.
A Changing Regulatory Landscape
The delay in Solana ETF reviews reflects a broader regulatory shift, as the U.S. prepares for a new administration under President-elect Donald Trump. Known for his pro-crypto stance, Trump’s administration is expected to bring more favorable policies for blockchain and digital asset innovation. Issuers and investors alike hope that this transition will pave the way for a more inclusive and supportive environment for crypto ETFs.
Looking Ahead
For now, Solana ETF issuers and their supporters must wait for clearer signals from the SEC and the incoming administration. While delays may frustrate stakeholders, the growing success of spot Bitcoin and Ethereum ETFs underscores the potential for crypto ETFs to thrive once regulatory hurdles are addressed.