- The U.S. SEC is set to reject two of the five Solana ETF applications, creating uncertainty around SOL’s ability to reach its $300 price target.
- Despite the setbacks under the current administration, optimism for Solana ETFs is rising, fueled by potential regulatory changes under a pro-crypto Trump administration.
A report has revealed that the U.S. SEC won’t be approving two of the five prospective Solana ETFs. The burgeoning ETF industry, while seeing significant growth, is encountering a hurdle under the current administration.
According to the report, the U.S. SEC has notified the 2 anonymous ETF issuers that it would be rejecting their 19b-4 filings.
This development could derail SOL’s upward trajectory, potentially preventing it from reaching the projected $300 price target. Additionally, a fierce battle for the 5th position ensues as the token wages war against BNB’s market cap.
SEC to Deny Spot Solana ETF Applications
Fox Business journalist Eleanor Terret took to the x platform reporting that the U.S. Securities and Exchange Commission has informed to of the five Solana ETF applicants that their 19b-4 filings will be denied.
SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.
The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.
— Eleanor Terrett (@EleanorTerrett) December 6, 2024
With that in mind, as per our previous reports , the five applicants include VanEck, 21Shares, Canary capitals, and Bitwise. Additionally, Grayscale also applied to convert its Solana Trust into an ETF.
Additionally, the journalist added that industry veterans believe that the U.S regulatory body high chance than not is unlikely to approve any new cryptocurrency ETFs under the current (Biden) administration.
A user on X countered Terret, arguing that approval remains likely. In response, the journalist said ““The SEC won’t approve just one or a couple and not the others. Remember the bitcoin ETFs? Eleven launched on the same day”.
However, in this case, grass might be greener on the other side. A few factors stay in favor of the already applied ETFs. For starters, market participants believe that their would be a friendlier crypto environment under the new administration( Pro-crypto Donald Trump). Secondly, industry veterans anticipate significant developments once Paul Atkins assumes the role of US SEC Chair in January.
No surprise, but won’t be any movement on spot crypto ETF filings until new leadership in place… Lame duck
Nate Geraci further noted that the SEC recently acknowledged the Bitwise Crypto Index ETF, which includes a 4% allocation to Solana.
Meanwhile, optimism among crypto industry participants for a Solana ETF approval has grown, spurred by the appointment of David Sachs as the AI and Crypto Czar in the White House. President-elect Donald Trump confirmed the news via his Truth Social platform.
While other altcoins rallied, sparking altcoin season, SOL remained stagnant around its $240 resistance.
At the time of writing, SOL is swapping hands with $239.77 representing a 2.40% surge in the past 24 hours. Additionally, the digitsl asset who’s market cap stands at $113.97B has surged by 0.73% and 30.47% in the past week and month respectively.
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