Solana ETFs Face Setback as SEC Plans to Reject Key Filings

Highlights:

• Solana ETFs face setbacks, as a reputable source revealed that the SEC will reject two 19b-4 filings.
• The SEC has no plans to approve any other ETF this year.
• Solana’s price remained unperturbed as it continued its recovery actions with a slight 2.1% upswing in the past 24 hours.

Renowned Fox Business Journalist Eleanor Terrett has revealed that the United States Securities and Exchange Commission (SEC) plans to reject 19b-4 filings from two prospective Solana (SOL) Exchange Traded Funds (ETFs) issuers. The revelation appeared in one of her most recent tweets on December 6, dashing enthusiasts hope.

Relaying the latest development on X, the journalist stated:

“I’ve confirmed that the SECGov has notified at least two of the five prospective issuers that it will reject their 19b-4 filings for the SOL spot ETFs.”

In the same tweet, Terrett revealed that the outgoing SEC leadership would not entertain further ETF filings. Therefore, any approval or submission will likely stall till the Donald Trump-led administration assumes power in early 2025.

At the time of writing, the reporter or any other reputable source has not revealed the issuers affected by the SEC’s planned rejection. Similarly, no reason for the regulatory watchdog actions has emerged. However, most market enthusiasts speculated they would patiently wait for the SEC leadership overhaul in the coming weeks.

🚨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

Proposed Rejection Followed Grayscale’s Recent SOL Spot ETF Filing

It is worth noting that the latest development followed Grayscale’s filing for a potential Solana ETF approval. One of Crypto2Community’s previous publications reported that the asset management firm presented a 19b-4 application to convert its Grayscale Solana Trust into a spot ETF entity.

The above filing mirrored similar pathways the investment firm followed to land approvals for its Bitcoin and Ethereum ETFs. Moreover, by joining the race for the Solana ETF approval, Grayscale became the fifth asset management platform aiming to achieve a similar goal. Other competitors hoping to launch a similar Solana ETF commodity include Bitwise, Canary Capital VanEck, and 21Shares.

Considering the timeline of the ETF applications, chances abound that the SEC has not possibly reviewed Grayscale’s filing, which invariably implies that it will escape the anticipated rejection. However, as stated earlier, nothing seems authentic, as only the SEC can clear every doubt by making its decision public.

Odds of Approving the Remaining Three SOL ETFs Filing

The SEC’s decision to reject two 19b-4 applications implies that three entities could still land Solana spot ETF approvals. Therefore, market participants and SOL enthusiasts might as well continue remaining hopeful. A follower raised a similar concern in one of the most trending comments under Terrett’s X post. She queried, “2/5? So, the odds are not that bad. At least one could get approved or all delayed.”

In response to the raised concerns, which seemed valid, the journalist noted that ETF approvals do not work how the follower envisaged. In her words, the SEC will not endorse a few applications and reject others. She cited Bitcoin ETFs’ approval, noting that all eleven commodities launched on the same day.

The SEC won’t approve just one or a couple and not the others. Remember the bitcoin ETFs? Eleven launched on the same day.

— Eleanor Terrett (@EleanorTerrett) December 6, 2024

Solana’s Price Reaction

Despite the setback, Solana’s price seemed unaffected as it continued its recovery phase. The token spiked by about 2.1% in the past 24 hours, reflecting about $241.5 in selling price. Within the same timeframe, SOL displayed price levels ranging between $219.55 and $246.24.