Solana ETF is facing challenges, primarily due to the U.S. Securities and Exchange Commission not acknowledging the submissions.
The debut of the Solana exchange-traded fund (ETF) has become one of the most talked-about subjects in the cryptocurrency community, particularly since the trading of Bitcoin and Ethereum Spot ETFs began in the United States this year.
Bloomberg analysts have recently posted on social media that the financial instrument known as SOL is facing significant challenges. This is due to the fact that the United States Securities and Exchange Commission (SEC) appears to have failed to acknowledge the submissions.
Solana ETF Launch In Jeopardy
This new development has led to disagreements regarding the classification of the cryptocurrency as a security. VanEck and 21Shares’ recent decision to remove their Solana ETF registrations highlights the rising ambiguity that surrounds the Securities and Exchange Commission’s (SEC) standing on cryptocurrencies.
In a recent post on X, Eric Balchunas, an analyst for Bloomberg ETFs brought attention to the fact that the submissions did not advance past the second phase since the SEC did not acknowledge them.
This forced the exchanges to withdraw their 19b-4 files, effectively halting the approval process. As Balchunas pointed out, the chances of approval are extremely low unless there is a change in the leadership of the Securities and Exchange Commission.
Recent rumours have suggested that Kamala Harris will most likely pick Gary Gensler, the current chair of the Securities and Exchange Commission, to run the Treasury Department during her administration.
It is important to note that speculations are rife in the United States market. Persistent discussions about SOL’s classification as a security have intensified due to its current circumstances.
On social media, a person stated that it is illogical to define the cryptocurrency as a security for the same reason that Ethereum is not a security. As a reaction, James Seyffart, an analyst at Bloomberg, pointed out that the Securities and Exchange Commission (SEC) is, in fact, arguing both in public forums and in the courts.
This comment has further fueled concerns about the possible introduction of the SOL exchange-traded funds. Suspicions have arisen due to the recent removal of the Solana ETF filings from the CBOE website, further complicating the situation.
Following the SEC’s approval of nine spot Ethereum ETFs in June, VanEck and 21Shares initially submitted their applications for a spot Solana exchange-traded fund (ETF). The withdrawal of their 19b-4 filings, on the other hand, has raised questions about the continuation of the ETF clearance process.
VanEck Remains Optimistic On Potential Launch
On the other hand, VanEck continues to have a positive outlook for the approval of its Solana ETF. Recently, Matthew Sigel, the Head of Digital Asset Research at VanEck, expressed his confidence in classifying SOL as a commodity, a classification that mirrors that of Bitcoin and Ethereum.
Sigel used the evolution of legal viewpoints as evidence to support his position, emphasizing that, depending on the circumstances, certain assets might be considered both securities and commodities.
Specifically, his perspective mirrors a broader legal debate about how to regulate crypto assets. Meanwhile, he proposed that while certain assets may serve as securities in primary markets, they may behave more like commodities in secondary markets, despite their trading in primary markets.
The nuanced perspective presented here has the potential to play a significant role in the development of future regulatory responses to cryptocurrencies, such as SOL. Presently, the price of SOL rose by approximately 1%, reaching $144.14.
Additionally, its trading volume increased by 5% to $2.16 billion. During the past twenty-four hours, the cryptocurrency has experienced a range of prices, with a high of $148.65 and a low of $141.36.
Meanwhile, recent Solana price research revealed that the cryptocurrency may encounter obstacles on its way to reaching $200, citing certain factors.
