The U.S. Securities and Exchange Commission (SEC) recently rejected applications for Solana ETFs, blocking its entry into traditional financial markets. While Bitcoin and Ethereum ETFs have been approved, Solana’s unclear status as security remains a key hurdle.
This has led to debate among investors, questioning why Solana is being treated differently from other major cryptocurrencies like Ethereum and XRP.
SEC Rejects Filings: What’s the Reason?
Over the weekend, alert market watchers noticed that applications for Solana ETFs by VanEck and 21Shares had been removed from the CBOE’s website. These applications, known as 19b-4 forms, were never officially submitted to the Federal Register, likely due to concerns over Solana’s classification as a security.
This follows the SEC’s recent efforts to change the status of assets like SOL, MATIC, and ADA in its ongoing legal case with Binance.
If these filings had been submitted to the Federal Register, the SEC would have faced a deadline to make a decision, putting pressure on the agency. However, by rejecting these filings, the SEC has effectively paused any progress, suggesting that Solana ETFs in the U.S. might not be approved soon.
Comparisons with Ethereum and XRP
Meanwhile, Lark Davis, a prominent crypto investor, voiced his concerns on X, asking why Solana is being singled out when both Ethereum and XRP have been viewed as non-securities.
The rejection of the Solana ETF filings by the SEC has added to the uncertainty surrounding Solana’s regulatory status, leaving many to speculate about the future of this popular blockchain project.
VanEck’s Optimism For Solana ETF
Despite the SEC’s rejection, VanEck remains hopeful about Solana’s future. Matthew Sigel, VanEck’s Head of Digital Assets Research, shared on X he believes a Solana ETF will eventually be approved.
He argued that Solana’s move toward decentralization and the changing legal views on crypto assets mean that SOL should be seen as a commodity rather than a security.
Sigel stressed that VanEck’s application is still in play, showing that the firm is not giving up on its goal of launching a Solana ETF. While some think approval may depend on the results of the upcoming U.S. Presidential election, VanEck is determined to make Solana ETFs a reality in traditional markets.
