SEC Delays Approving Two Major Solana (SOL) Exchange-Traded Funds (ETFs)

The Solana ETF proposals by Bitwise and 21Shares have been delayed as the SEC begins a new round of proceedings to assess whether they comply with key rules

The US Securities and Exchange Commission (SEC) has hit the brakes on approving two major proposals for Solana exchange-traded funds (ETFs).

The Solana ETF proposals by Bitwise and 21Shares have been delayed as the SEC begins a new round of proceedings to assess whether they comply with key rules under the Securities Exchange Act.

This move comes as the financial watchdog is juggling several applications for crypto ETFs while trying to decide on a course of action.

The proposals from Bitwise and 21Shares were among the first to be filed earlier this year. They highlight the growing interest in Solana, which is often praised for being faster and cheaper to use than Ethereum.

The financial watchdog must deem that the ETPs won’t lead to market manipulation or pose any threat to investor protection before giving them the go-ahead.

The proposals, which were filed via Cboe’s BZX Exchange earlier this year, aim to provide a simple and accessible way to invest in Solana.

Bitwise is known for its experience in managing crypto indexes, while 21Shares already manages ETFs for Bitcoin and Ethereum. Despite their experience and the fact that several Solana ETFs have been proposed, the SEC hasn’t approved any yet.

The SEC is also seeking public feedback on the proposal to list and trade shares of a trust that holds SOL, the cryptocurrency. It stated:

“In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold SOL, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission.”

This isn’t just about Solana. The SEC has been slow to approve crypto ETFs across the board. There are many applications waiting while the regulator figures out how best to handle these new types of investments.

That said, some market watchers remain hopeful. Analysts from Bloomberg previously estimated that most of these crypto ETFs will be approved by the year’s end. They put the chances at about 90% for both Solana and Litecoin ETFs.

This optimism is partly fueled by pro-crypto former President Donald Trump, who pledged to make the U.S. the world’s crypto capital. His commitment was clear when he signed an executive order to establish a strategic Bitcoin reserve and a U.S. digital asset stockpile. Rising institutional interest has also contributed to this positive outlook.

Despite these encouraging developments, the wait for a Solana ETF continues. The SEC’s latest move means a final decision could be pushed well into the latter part of the year.

Solana’s Price Keeps Climbing Despite the Hold-Up

Despite the SEC’s delays, Solana’s price hasn’t missed a beat, climbing more than 3% in the last 24 hours alone. Top crypto commentator on X, Ali Martinez, revealed that the number of wallets holding 0.1 or more Solana has reached a new all-time high of 11.16 million, showing growing accumulation of the token.

Another analyst, Cas Abbé, highlighted that Solana’s multi-year uptrend remains intact. He explained that last month, SOL retested the trendline that marked its bottom, and since then, the token has surged over 50% as its fundamentals continue to improve. Cas remains confident that $290 wasn’t SOL’s peak and expects it to hit a new all-time high in 2025.

SEC approval of Solana ETFs could trigger another price surge, similar to Bitcoin’s response to ETF approval in January 2024. ETFs typically provide easier and safer investment access, often driving prices higher.

The SEC’s measured approach demonstrates their caution with crypto investments. While investors may find the pending approval frustrating, eventual approval of Solana ETFs could catalyze increased investment and price appreciation.

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Ifeoluwa specializes in Web3 writing and marketing, with over 5 years of experience creating insightful and strategic content. Beyond this, he trades crypto and is skilled at conducting technical, fundamental, and on-chain analyses.