Solana ETF Approval Suffers Major Setback After New SEC Update

The chances of a Solana exchange-traded fund (ETF) have suffered a major setback after speculations that the US SEC has provided a crucial update. A new update would put the Solana community in an emotional mangle. A few days after the positive sentiments over Grayscale’s involvement in the Solana ETF proceedings swelled, speculations suggest the product may not see the light of day soon. FOX Business journalist Eleanor Terrett reported that the Solana ETF approval process would not proceed further under the current administration. The notable reporter affirmed the development, citing an undisclosed source. SEC to Reject Solana ETF Applications Terrett tweeted that the Securities and Exchange Commission notified at least two of the five Solana ETF applicants that the approval process would not proceed for now. The development suggests the regulator will respond negatively in the preliminary decision due in January 2025. Meanwhile, the FOX Business journalist stated that the reason for the possible rejection is a new consensus in the SEC camp. The Wall Street watchdog insisted that the current administration would not approve any new crypto ETFs. Notably, this administration, under the leadership of Gary Gensler, gave greenlight to the first crypto spot ETF in history. In January, it approved the Bitcoin spot ETF, sanctioning the second of such products—the Ethereum spot ETF—in July. What It Means for XRP ETFs Meanwhile, the recent development would affect ETF applications of other cryptocurrencies. This means the SEC will likely reject all exchange-traded products with a deadline before the new administration takes over. Although the resumption time for appointed chair Paul Atkins remains unknown, consensus expects it to be shortly after Donald Trump’s January 20 inauguration. Using this timeline, the new administration will likely decide on the XRP spot ETF, which has a deadline of June 2025. Meanwhile, notable analysts have predicted that XRP and Solana ETFs should start trading by the end of 2025. They believe a friendlier crypto regulation under the incoming administration would aid this course.