The outlook for United States-based Solana exchange-traded funds (ETFs) in 2024 remains bleak. Recent regulatory actions suggest that these ETFs have a slim chance of approval under the current administration.
The Securities and Exchange Commission (SEC) has repeatedly rejected necessary filings for Solana ETFs. This latest setback came on Tuesday when the SEC declined the Chicago Board Options Exchange’s (CBOE) 19b-4 filings for two prospective spot Solana ETFs.
The crucial 19b-4 filings, necessary to initiate the SEC’s review process, never reached the Federal Register. As a result, the SEC halted any progress toward approval or denial.
According to Bloomberg ETF analyst Eric Balchunas, the chances of Solana ETF approval are “a snowball’s chance in hell” under the current administration. He predicts near-zero chances in 2024 and 2025, especially if Kamala Harris wins the election and appoints Gary Gensler as Treasury Secretary.
Nate Geraci, President of the ETF Store, echoed this sentiment, stating that a Solana ETF approval is unlikely under the existing administration. He also pointed out the absence of CME-traded Solana futures, which are believed to be necessary for approval.
VanEck’s head of digital asset research, Matthew Sigel, remains optimistic about launching a spot Solana ETF. He cited a 2018 case involving the Commodity Futures Trading Commission (CFTC) against My Big Coin Pay. Sigel argued that courts have drawn parallels between natural gas and digital tokens, suggesting that all types of digital assets could be treated as commodities if futures contracts exist for one.
Also Read: SEC Stuns Crypto Market – Solana ETF Filings Vanish
The CFTC’s recent stance on cryptocurrencies further complicates the regulatory landscape. In July 2024, CFTC Chairman Rostin Behnam stated that 70-80% of cryptocurrencies are not securities. He advocated for the CFTC’s full oversight of the crypto market, which could potentially open the door for Solana ETFs.
While the regulatory landscape for Solana ETFs remains uncertain, the ongoing debate highlights the challenges and complexities of bringing crypto-based products to the traditional financial markets.
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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