SEC Expected to Deny Applications for Spot Solana ETFs — Report

The U.S. Securities and Exchange Commission (SEC) is poised to reject several applications for spot Solana exchange-traded funds (ETFs), according to reports.

Fox News reporter Eleanor Terrett shared that the SEC has already informed at least two of the five companies seeking approval for Solana ETFs. Terrett mentioned on December 6 that the prevailing sentiment is that the SEC is unlikely to approve any new cryptocurrency-based ETFs under the current administration.

Recently, several asset management firms have filed proposals for Solana (SOL) ETFs, aiming to offer investors direct exposure to the digital asset. VanEck was the first to file a 19b-4 application with the SEC on June 27, followed closely by 21Shares and Canary Capital later that summer. In late October, Bitwise and Grayscale submitted their own applications after the presidential election victory of Donald Trump.

The process of launching a crypto ETF begins with a 19b-4 application, which outlines the structure of the proposed product, trading mechanisms, and compliance with securities regulations. Although rejections could delay the approval process, firms may still have an opportunity to reapply under new SEC leadership. On December 4, Trump nominated Paul Atkins, a known crypto policy advocate, to take over as SEC Chair, fulfilling his campaign promise to replace current chair Gary Gensler.

Terrett speculated that, like with Bitcoin ETFs, the SEC is likely to approve multiple Solana ETFs simultaneously, rather than approving just one. “The SEC won’t approve just one or two and leave others out. Think back to the Bitcoin ETFs—eleven launched on the same day,” she said.

Trump’s return to the White House has sparked increased interest in crypto-focused products on Wall Street. On November 28, Bitwise also filed for an ETF based on its existing 10 Crypto Index Fund. Additionally, the crypto industry expects Ethereum funds to incorporate regulated staking features by 2025.

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