Regulatory Body SEC Allegedly Denies Approval for Two Proposed Spot Solana ETFs

Date: December 6, 2024

Journalist: Eleanor Terrett (@SECGov)

The U.S. Securities and Exchange Commission (SEC) has continued its stance against new cryptocurrency exchange-traded funds (ETFs), with at least two applications for spot Solana ETFs receiving rejections.

According to reports, the SEC has notified at least two of the five prospective issuers that their 19b4 filings for Solana spot ETFs will be rejected. However, it remains unclear which of the five applicants - VanEck, 21Shares, Bitwise, Canary Capital, and Grayscale Investments - are affected by these rejections.

Despite the rejections, Solana (SOL) exhibited minimal reaction to the news. The price chart for SOL shows high volatility with a slight downward trend, which might be due to the muted market response to the news or the community's optimism surrounding the potential appointment of a new SEC chair.

The anticipated new SEC chair is expected to reform the agency's stance on cryptocurrencies, providing a glimmer of hope for the future of cryptocurrency ETFs in the United States.

It is important to note that none of the five applicants for a Solana spot ETF have had their application rejected by the SEC under the current government; the SEC’s decisions are still pending with final rulings expected by October 10 or October 16, 2025. Previous requests have been delayed but not outright rejected so far.

The SEC, under the current administration, has maintained a firm stance against new cryptocurrency ETFs, with the consensus among sources being that no new crypto ETFs will be entertained. This stance might change with the anticipated leadership changes at the SEC.

Interestingly, eleven spot Bitcoin ETFs were launched on the same day in the past, suggesting a potential future for cryptocurrency ETFs in the United States. However, until the new SEC chair takes office and reviews the current stance on cryptocurrency ETFs, the future remains uncertain.

None of the companies mentioned in this article have officially confirmed Terrett's statement at the time of this publication. As always, readers are advised to conduct their own research before making investment decisions.