Will Solana ETFs Survive SEC Scrutiny? VanEck Remains Hopeful
Solana ETF Filings Vanish Amid Regulatory Concerns
Reports on August 17 revealed the sudden disappearance of Solana spot exchange-traded fund (ETF) filings by VanEck and 21Shares from the Chicago Board Options Exchange (Cboe) website, sparking speculation about delays or possible rejection by the U.S. Securities and Exchange Commission (SEC).
The removal led to rumors that the SEC may have raised concerns with the issuers, potentially prompting the withdrawals to address regulatory issues before resubmission. This unexpected move has cast a shadow over the Solana community, which saw the ETFs as a gateway to mainstream adoption.
By August 20, it emerged that the SEC had discussed concerns about Solana's potential classification as a security, leading to the rejection of related forms and their removal from the Cboe website. The absence of these filings on the Federal Register further fueled doubts about the approval of a Solana ETF anytime soon.
Although VanEck and 21Shares continue to push forward, with their filings still visible on the SEC's EDGAR system, market experts suggest that under the current Biden Administration, approval chances are slim, possibly delayed until a new administration takes office in 2025 or later.
Solana's Struggles Continue Amid Regulatory and Market Pressure
Despite these challenges, VanEck remains committed to launching a Solana ETF, betting on the network's investment potential. The firm argues that Solana functions similarly to Bitcoin and Ethereum, which are often treated as commodities rather than securities, a distinction they believe is crucial for SEC approval.
However, Solana's native token, SOL, continues to face headwinds. The network has seen a significant outflow of $39 million last week, a record institutional withdrawal driven by declining interest in meme coins, which Solana heavily relies on.
Brazil has taken a different stance, approving the second Solana-based ETF provided by Hashdex, making it the first country to greenlight Solana ETFs. This contrasts sharply with the uncertainty in the U.S., where VanEck continues to navigate significant regulatory hurdles.
Conclusion
The challenges facing SOL, including competition from other networks like Tron and a drop in network activities such as DeFi, NFTs, and gaming, have further dampened investor confidence. Despite these setbacks, VanEck remains hopeful, anticipating that evolving legal perspectives on cryptocurrencies could eventually clear the path for Solana and other altcoin ETFs.
This article has been refined and enhanced by ChatGPT.
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