Why Is the SEC Blocking the Solana ETF? Decoding the Truth

Bloomberg’s ETF analyst Eric Balchunas may be very constructive skeptical in regards to the potential launch of a spot ETF for Solana within the close to future. Eric shared an in depth flowchart explaining the approval course of. Notably, on July 8, the CBOE filed 19b-4 for a Solana ETF. The second step of approval required the US SEC to publish CBOE’s 19b-4 submitting for Solana ETF on the company’s web site. Nevertheless, the company declined and CBOE’s Solana ETF submitting was by no means posted on the SEC web site.

“The possibility of approval of a snowball”

Consequently, Balchunas introduced that the company had withdrawn the 19b-4 filings for Solana ETFs following the SEC’s refusal to publish them. Nevertheless, potential Solana ETF issuers’ S-1 filings are nonetheless energetic.

In an X-post, he acknowledged that there’s “a snowball’s probability of approval except there’s a change in management.” He additionally stated that whereas there’s a near-zero probability of the SEC approving a SOL ETF in 2024, there may be additionally a near-zero probability in 2025 if Kamala Harris wins.

Can Trump change the destiny of SOL ETF?

The one hope, in response to Balchunas, is that if Trump wins the subsequent presidential election. He believes the probabilities of approval of a Solana ETF might skyrocket if Donald Trump in the end turns into US president.

This means that Trump might change the management of a number of federal businesses, together with the SEC. It’s notable that throughout the Bitcoin 2024 convention, Trump had promised to fireside SEC Chairman Gary Gensler on his first day in workplace if he have been elected. Regardless of Gensler’s key position in approving Bitcoin and Ethereum spot ETFs, there are speculations that he won’t assist the launch of spot-based funds for different cryptos.

Nate Geraci, the president of the ETF Retailer, had additionally shared this comparable feedback on Solana ETF not too long ago. He acknowledged that ‘the one viable path for spot approval of the Solana ETF could be the implementation of a reputable crypto regulatory framework that clearly defines which crypto belongings are securities versus commodities – or for the SEC to comply with Solana being designated as a non- security merchandise. ‘. “Solana ETF won’t get off the bottom rapidly below the present authorities,” he concluded.

Brazil approves its second SOL ETF!

Brazil’s CVM stays the one regulator on the earth to approve a Solana spot ETF. Brazil’s securities regulatory physique, Comissão de Valores Mobiliários (CVM), has accepted its second Solana spot ETF, just a few days after the product’s first was accepted globally. CVM’s database stated the brand new Solana spot ETF could be supplied by Hashdex, a $962 million Brazil-based asset supervisor, in partnership with funding financial institution BTG Pactual.

See additionally: Is Solana a safety? SEC Rejects Cboe’s Solana ETF Functions