The U.S. Securities and Exchange Commission (SEC) is reportedly poised to reject spot Solana (SOL) ETF applications, dealing a blow to the hopes of crypto enthusiasts. Fox Business journalist Eleanor Terret revealed that two out of five prospective issuers have already been notified that their 19b-4 filings will not gain approval. This decision aligns with the SEC’s broader hesitancy toward cryptocurrency ETFs under the current administration.
Regulatory Hurdles for Spot Solana ETFs
Despite a surge in demand for cryptocurrency investment products, the SEC remains firm in its stance against approving new crypto ETFs. Terret noted that the agency is unlikely to approve one or two isolated filings, citing the precedent set with Bitcoin ETFs, where multiple approvals occurred simultaneously.
Industry insiders speculate that no significant progress will be made until January, when Paul Atkins assumes the role of SEC Chair. Notably, Nate Geraci, President of the ETF Store, highlighted the SEC’s recent acknowledgment of Bitwise’s Crypto Index ETF, which includes a 4% Solana weighting. While this acknowledgment raised some hopes, it appears insufficient to sway the regulator’s current position.
Adding a layer of complexity, optimism around Solana ETFs has emerged with David Sachs’s appointment as the AI and crypto czar in President-elect Donald Trump’s administration. Crypto proponents are hopeful that this move signals a shift toward more favorable policies.
$SOL ETF has been secured tonight basically
— Solana Legend 🎒 (@SolanaLegend) December 6, 2024
Not investment advice pic.twitter.com/9g82QdOtcf
SOL Price: Resistance at $240
Solana’s price has remained steady around its crucial resistance level of $240, even amid growing skepticism about ETF approvals. Currently trading at $241, SOL has shown a modest 1.68% gain in the last 24 hours, with a market capitalization of $114.57 billion.
$SOL seems to be breaking out to the upside! The target is $290🎯 pic.twitter.com/XLi7w6vVfK
— The Moon Show (@TheMoonCarl) December 5, 2024
While some altcoins like XRP have rallied significantly, Solana’s price action has been relatively subdued. XRP’s 50% weekly gains have overshadowed SOL, which has yet to break out of its consolidation phase. Analysts believe that Solana’s price could see a technical breakout, with targets set between $290 and $300, if it overcomes current resistance levels.
Looking Ahead
The SEC’s anticipated rejection of spot Solana ETFs underscores the challenges facing the cryptocurrency market as it seeks regulatory approval for mainstream investment products. However, shifts in leadership and policy in 2024 could alter the trajectory of crypto regulation.
For now, Solana investors will closely watch price movements and technical indicators, waiting to see if the token can capitalize on the broader altcoin momentum and reach new all-time highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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