The United States Securities and Exchange Commission (SEC) is likely to turn down applications for spot Solana ETFs, dampening the expectations of investors. Journalist Eleanor Terret of Fox Business reported that at least two out of five candidates have been informed that their applications will be declined. The specific applicants have not been identified, yet this new information has drawn significant attention. Observers are intently following the fate of the remaining three, who have also submitted 19b-4 applications.
Terret noted that the government usually approves a number of ETFs, as demonstrated by the authorization of 11 spot Bitcoin ETFs in January. However, industry experts commonly hold the view that the current administration is improbable to greenlight any new crypto ETFs in the foreseeable future, notwithstanding the growing demand from both institutional and individual investors.
According to industry sources, until new SEC leadership takes charge, with Paul Atkins anticipated to head the agency next month, there will be no substantial advancement in crypto ETF registrations.
Despite the regulatory ambiguity, Solana’s price has remained robust. At the time of writing, SOL is trading at $238, having increased by 1.81% in the past 24 hours. Its stability has led market analysts to closely monitor its resistance level of $240. Many predict that SOL’s price could ascend to an all-time high between $290 and $300 due to a potential technical breakout.
SOL’s upward trend has been overshadowed by other cryptocurrencies. For instance, XRP has recorded weekly gains exceeding 50%. This has made investors question SOL’s momentum given the persistent regulatory uncertainty.
While the approval of spot Solana ETFs remains uncertain, the appointment of David Sacks as the White House’s AI and Crypto Advisor has kindled hope for the future of crypto regulations.
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