Sui Chung, the CEO of CF Benchmarks has described Solana ETFs as a non-starter downplaying widespread optimism of a launch. Chung pointed to previous requirements cited by the Securities and Exchange Commission (SEC) before giving the green light to other products. The price of SOL is down as the chances of a spot ETF for the asset hangs in a balance.
Solana ETFs Are Far From Approvals
Solana ETFs which are anticipated along industry circles are gaining momentum as the next crypto ETF to get the regulatory nod. As the fifth largest digital crypto asset, SOL holders have projected an approval that will drive more funds to the market. Sui Chung noted that Solana-based ETFs will not happen because some pre-existing requirements are not met.
“Solana ETFs are not going to happen, or at least, it won’t happen on the same basis as how Bitcoin and Ether happened.”
Chung pointed to a lack of regulated Solana futures market hinting on the SEC statement that a highly regulated futures market is a prerequisite for crypto ETFs for exchanges in the country. Despite this, Solana enthusiasts are still optimistic about the approval of the products creating a new investment window for traditional investors.
Bitcoin and Ether futures were listed on the CME in 2017 and 2021 respectively setting the tone for a future approval of the products. “…and there’s been no disorder in those contracts… when you have futures that trade without market disorder, there’s no reason to not have spot ETFs.”
SOL Price Slides
At press time, Solana price trades at $130.20 taking a 1.4% decline in the last 24 hours. SOL is known for its performance above the wider market but recent figures show struggles as macro factors flip negative. SOL has performed better than BTC and ETH this year and a spot ETF would bolster its numbers ahead of upcoming bullish events.
Spot Bitcoin ETFs continue to attract inflows after it rose to new highs in Q1 2024. This has raised optimism among Solana holders of a similar turnout should funds get approved. Meanwhile Solana bulls gear towards a recovery after Tron’s “Vampire Attack” which saw its price take a hit.
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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