7 hours ago
The US Securities and Exchange Commission (SEC) extended its reappraisal of 2 high-profile proposals for spot Solana (SOL) exchange-traded funds, signaling further delays successful the support process for crypto-linked concern products.
The bureau said it would statesman a caller circular of proceedings to measure whether the ETF proposals from plus managers Bitwise and 21Shares comply with cardinal provisions of the Securities Exchange Act.
Specifically, the SEC cited concerns related to marketplace manipulation and capitalist protection, factors it is obligated to measurement earlier granting immoderate ETF listing.
Prolonged wait
Bitwise’s application, filed successful January done Cboe’s BZX Exchange, and 21Shares’ separate proposal person present each been delayed astatine slightest once.
While some firms person acquisition offering crypto concern products, 21Shares already manages approved Bitcoin (BTC) and Ethereum (ETH) ETFs. The SEC has yet to authorize immoderate money tied to Solana, a blockchain often touted arsenic a faster, lower-cost alternate to Ethereum.
The regulator said it is seeking further nationalist input and analytical clip to find whether the projected regularisation changes would conscionable its standards for preventing fraud and ensuring capitalist confidence.
The regulator’s cautious code suggests that Solana, contempt its rising prominence, whitethorn look a longer way to ETF support than its predecessors.
Regulatory inertia
The hold comes amid a broader regulatory bottleneck affecting respective integer plus ETFs. The regulator has postponed decisions connected respective crypto ETFs successful caller weeks and months. Nonetheless, optimism remains beardown successful the market.
Bloomberg analysts James Seyffart and Eric Balchunas person antecedently stated that they expect precocious chances of support for astir ETF applications, with the last greenish airy anticipated sometime successful the latter fractional of the year.
They estimated a 90% likelihood of eventual approval for some Solana and Litecoin (LTC) ETFs, attributing their optimism to favorable commodity classifications and rising organization interest.
However, with last decisions perchance months distant and broader argumentation uncertainty lingering, investors whitethorn beryllium forced to hold until precocious 2025 for clarity connected whether Solana ETFs volition marque it to US markets.
The station SEC delays determination connected Bitwise, 21Shares Solana ETF applications, opens nationalist consultation appeared archetypal connected CryptoSlate.
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