The US Securities and Exchange Commission (SEC) has delayed its decision on the spot Solana ETF applications from 21Shares and Bitwise. The delay is part of the uncertainty surrounding the broader crypto ecosystem’s ETF pursuits from asset managers. According to an update from the markets regulator, it is “instituting proceedings” for the two firms’ filings starting today.
US SEC and Solana ETF Bid
Many asset managers have filed for a Solana ETF, with the Bitwise filing lodged on January 28 with the BZX Exchange. After the SEC acknowledged the product, it initiated the first delay for the asset on March 11.
21Shares was one of the first in the industry to file for a Solana ETF in the United States. Despite running spot Bitcoin and Ethereum ETF products, the firm has yet to secure approval for the current Solana fund.
As part of the newly opened proceedings, the regulator said it is opening grounds for potential disapproval in line with the commission’s existing policies as noted in its official communication detailing the postponement.
“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest,” the regulator wrote.
Notably, the SEC delayed Grayscale SOL ETF earlier this month, an encompassing slowdown for most digital currency funds on its desk for reviews. The consideration for approval or disapproval remains a very polarizing conversation in the market.
While Bloomberg Analysts are issuing a 90% approval odds for the Solana ETF, other industry leaders are still doubting the prospects in the coming months.
This is a developing story, please check back for updates!!!
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Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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