lthough multiple users filed for the Solana ETF, Eric Balchunas still does not think there Is a high probability of approval as of now, The main reason being the SEC.
SEC Position on Solana ETFs
Eric Balchunas is still skeptical regarding the approval of a solana ETF in 2024, with the only reason for him to change his mind would be a complete change at the top of the security and exchange commission. He mentions as well that although the Chicago Board Options Exchange (Cboe) pulled out their 19b-4 forms because of no response from the SEC, the S-1 forms are still in process. These forms are required where new securities are to be offered to the public.
Continued Efforts by Issuers
Although Eric is quite skeptical about the regulatory challenges, VanEck’s head of digital asset research Mathew Sigel still holds an optimistic view as he characterizes Solana as a digital commodity and not a security. Moreover, VanEck with its 21Shares is still working towards the approval of their Solana spot ETF, Betting on more favorable policies in the next few months.
Regulatory Uncertainties Persist
James Seyffart, another Bloomberg ETF analyst, notes that the biggest risk that is stopping the spot Solana ETF is the fact that the SEC has been aggressive in courts in trying to categorise Solana as a security instead of digital commodity.
A Wait-and-See Approach
Currently the future of Solana ETFs in the US market is uncertain due to the existing and potential regulatory issues and risk of being a security. The investors and participants in the crypto and ETF markets are likely to remain passive while waiting for the changes in political and regulatory environments.
