Solana ETFs Face SEC Rejection Roadblock

U.S. Solana ETFs could face approval delays amid a transition in federal administration and agency leadership.

Some spot Solana (SOL) exchange-traded fund issuers were informed of upcoming roadblocks for their applications by Securities and Exchange Commission staff, Eleanor Terrett of Fox Business said on X, citing inside sources.

Issuers were reportedly notified that the SEC would not consider new cryptocurrency ETF bids till Donald Trump takes office, leaving spot Solana funds in limbo until January 2025. So far, five firms, including VanEck, 21Shares, Bitwise, Canary Capital, and Grayscale, have submitted applications,

The reports of delays for 19b-4 filings, otherwise known as proposals for rule changes, arrived despite supposed progress with spot Solana funds in late November. At the time, firms pointed to feedback from the SEC and dialogue with agency staffers about advancing Form S-1 documents, a formality in securities registration for ETFs.

Issuers like WisdomTree have sought to expand the existing crypto product suite, encouraged by the success of spot Bitcoin (BTC) ETFs and strides made by spot Ethereum (ETH) ETFs in recent weeks. 

Spot Bitcoin ETFs have been a breakout story of the year, garnering $109 billion in assets since January and overtaking dormant holdings attributed to Bitcoin creator Satoshi Nakamoto. Issuers also filed paperwork to list spot (XRP) ETFs, as Ripple’s business looked ever stronger with stablecoin plans amid shifting policy climates and a new White House regime under pro-crypto President-elect Donald Trump.

Still, Wall Street leaders like BlackRock and Fidelity have deferred from joining the race to list crypto ETFs outside Bitcoin and Ethereum.