The US financial regulator will reportedly not approve Solana ETFs during President Joe Biden’s administration. However, crypto enthusiasts remain hopeful of a change when SEC chairman Gary Gensler leaves office in January 2025.
As reported by Fox Business correspondent Eleanor Terrett, the US Securities and Exchanges Commission (SEC) will be rejecting at least two of the five Solana (SOL) spot ETFs 19b-4 filings.
Terrett shared the news on her X account, adding that the financial watchdog’s general consensus is that ETFs will no longer be approved under the outgoing administration.
In a response to their post, a user asked if there’s a likelihood of one Solana ETF being approved, to which the journalist replied, “The SEC won’t approve just one or a couple and not the others. Remember the bitcoin ETFs? Eleven launched on the same day.”
_Many investors worry about what will become of Solana as other crypto coins get their ETFs approved. Is Solana missing out? Or the coin and it’s blockchain are okay as they are?
Investors still hopeful of a future Solana ETF approval
Across several social media platforms, the crypto community showered blame on the regulatory views of Joe Biden’s administration and SEC chair Gary Gensler. Crypto supporters believe the current regime used too much bureaucracy in the regulatory landscape of digital currencies.
Nate Geraci, president and co-founder of The ETF Institute, believes the approval of new crypto spot ETFs was highly unlikely after Donald Trump’s presidential elections victory.
“No surprise, but won’t be any movement on spot crypto ETF filings until new leadership is in place.” Geraci remarked.
Several pro-crypto advocates on X are hopeful spot crypto ETF applications will be approved when Donald Trump enters office in January next year. Moreover, they expect the stringent regulatory landscape will loosen up when incoming US SEC chair Paul Atkins takes charge.
One user expressed their belief that everything the SEC opposes will be authorized after Trump’s inauguration. They went on to say there’s no sense of delaying it for a couple months other than toying with the crypto community’s emotions.
The current battle for SOL and XRP ETFs is what was in the days of BTC and ETH ETFs. Many are taunting that under Trump, many more altcoin ETFs will take market root because of the promise he made once he took office as POTUS.
Bitcoin, and Ether ETFs performances show Solana investors missing out on profits
The US spot Bitcoin ETFs have amassed remarkable inflows and growth milestones, collectively attracting over $17 billion in net inflows within nine months. Over the last couple of months, BlackRock’s iShares Bitcoin Trust (IBIT) has led the Bitcoin ETF inflows charge, currently boasting over $50 billion in assets under management, per CoinGlass data.
Recent updates from CoinGlass also reveal a significant surge in inflows into U.S. spot Bitcoin ETFs. On December 3 alone, these funds recorded $675.97 million in inflows, a 90% increase from the $353.67 million seen the previous day. This marked the fourth consecutive day of net inflows, totaling over $1.45 billion during this period.
BlackRock’s IBIT witnessed $693.25 million in single-day inflows, bringing its holdings to over 500,000 BTC. The fund now accounts for approximately 2.38% of Bitcoin’s total supply and has nearly $50 billion in assets under management, solidifying its position among the top ETF launches of 2024.
Fidelity’s FBTC followed with $52.17 million, while VanEck’s HODL and Bitwise’s BITB secured $16.21 million and $7.8 million, respectively.
In the Ether space, spot ETFs have seen net inflows reach $1.3 billion since their launch in July 2024. That said, Ethereum spot ETFs have faced several challenges in FY 2024, including restrictions on staking and options trading and limited distribution through major brokerages.
Without ETF approval, Solana investors continue missing out on the substantial inflows and institutional attention enjoyed by Bitcoin and Ethereum. If a Solana ETF is not approved soon, this could hinder SOL’s acceptance in traditional investment portfolios, potentially negatively impacting growth and price trends.
At the time of writing, Solana’s price is hovering around the $237-$240 region, up 2% in the last 24 hours, according to CoinGecko updates. Analysts believe the price could gain ground to $290 if the coin breaks past its consolidation phase, but there’s growing skepticism that it could reach $300 following the news of Solana spot ETF application rejections.
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