- James Seyffart, an analyst from Bloomberg Intelligence, mentioned that the U.S. SEC review process takes 240-260 days, which could delay the Solana ETF timeline until 2026.
- Five firms, including Grayscale, Bitwise, and VanEck, have applied for Solana ETFs, and the SEC is expected to make an initial decision on these applications within 45 days.
The approval of Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs) in 2024 sparked excitement in the cryptocurrency industry, signaling growing institutional acceptance. However, amid this wave of enthusiasm, the spotlight now shifts to Solana (SOL) as five firms, Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, have submitted applications for spot Solana ETFs. As of now, these applications have yet to receive any official attention from the U.S. Securities and Exchange Commission (SEC).
In a January 16 interview, James Seyffart, an analyst at Bloomberg Intelligence, weighed in on the Solana ETF situation. Seyffart noted that while movements for a Solana ETF could gain momentum after Donald Trump takes office, the SEC’s prolonged review process might push the approval timeline into 2026. The SEC takes 240-260 days to review ETF filings, creating additional uncertainty around the potential launch.
These ETF applications have essentially been “denied outright” without acknowledgment, as per Seyffart’s comments. Despite the lack of progress on Solana ETFs, other cryptocurrency ETFs, such as those for XRP, continue to face regulatory hurdles.
A Shift in Regulatory Tone with Trump’s Inauguration
Seyffart pointed out that the approval process is complicated by ongoing lawsuits from the SEC against cryptocurrency exchanges. During Gensler’s 4 year tenure as SEC Chair, over 80 enforcement actions were taken, including lawsuits against major firms like Coinbase and Binance, primarily for violations related to unregistered tokens and unregistered exchange operations.
The departure of Gary Gensler on January 20, marks a significant shift in regulatory tone. Gensler’s leadership has been a point of contention within the crypto industry, and his exit is seen as an opportunity for change and crypto-friendly regulations. Trump has nominated Paul Atkins, a pro-crypto candidate, and a former SEC commissioner, to head the SEC. Reports also suggest that the SEC might suspend or dismiss pending cryptocurrency cases that do not involve fraudulent activities.
In 2024, several firms, Bitwise, WisdomTree, and 21Shares, pushed for approval of an XRP ETF, though no firm decisions have been made by the SEC on these filings. This highlights the broader regulatory challenges that crypto assets continue to face in the U.S., with approval timelines for multiple ETFs remaining stalled.
On a more optimistic note, Eric Balchunas, a senior ETF analyst at Bloomberg, expressed hope for the potential approval of a Litecoin (LTC) ETF in the U.S. He believes that Litecoin has a strong chance of becoming the next spot cryptocurrency ETF to gain approval, signaling that other altcoins might eventually follow suit. While hopes for a Solana ETF have faded, Solana’s value has seen a notable increase, rising by 16.82% in the past week and by 4.81% in the last 24 hours, bringing its price to $220.
