The US Securities and Exchange Commission (SEC) is set to reject applications for spot Solana ETFs, giving a blow to investors’ hopes for approval.
According to a post from Eleanor Terret, a journalist at Fox Business, at least two of the five candidates have been advised that their applications will be denied. Although no specific applicants have been named, the latest revelation has sparked much interest. Observers are closely watching what this means for the other three, who have also filed 19b-4 applications.
Terret points out that the government normally permits numerous ETFs, as it did in January with the licensing of 11 spot Bitcoin ETFs. She stated that industry experts generally believe that the present administration is unlikely to accept any new crypto ETFs in the future, even with an increasing demand from both institutional and retail investors.
According to industry insiders, no meaningful progress on crypto ETF registrations can take place until new SEC leadership takes over, with Paul Atkins expected to lead the agency next month.
Despite regulatory uncertainty, Solana’s pricing remains strong. As this article is published, SOL is trading at $238, up 1.81% in the previous 24 hours.
Its consistency has prompted market experts to pay particular attention to its resistance level of $240. Many believe SOL’s price could reach an all-time high of $290 to $300 due to a probable technical breakout.
SOL’s rally has been overshadowed by other cryptocurrencies, with XRP seeing weekly gains of over 50%. This has left investors questioning SOL’s momentum amid ongoing regulatory uncertainty.
While spot Solana ETF approvals remain elusive, the appointment of David Sacks as the White House’s AI and Crypto Advisor has bolstered hope for the future of crypto regulations.
Also Read: Grayscale Files for Spot Solana ETF with SEC
