Solana and Altcoin ETF Delays Continue as SEC Extends Review Process
- The SEC has delayed its decision on VanEck’s spot Solana (SOL) ETF, citing market assessment.
- Similar delays were issued for other altcoin ETFs, including Dogecoin, XRP, Litecoin, and Cardano.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on VanEck’s proposed spot Solana (SOL) exchange-traded fund (ETF). This delay aligns with the regulator’s cautious approach to cryptocurrency ETFs, emphasizing investor protection and market stability.
The SEC’s decision to delay the Solana ETF was widely anticipated, as the agency continues to assess various crypto-related investment products. Historically, the SEC has cited concerns about market volatility, regulatory scrutiny, and custody security when evaluating crypto ETFs.
The postponement does not mean rejection. Instead, it extends the review period, allowing the SEC more time to evaluate VanEck’s proposal and its potential impact. The approval of a spot Solana ETF could set a precedent for other altcoins, prompting the SEC to proceed cautiously.
SEC’s Broader Crypto ETF Delays
The SEC’s decision on VanEck’s Solana ETF comes amid broader delays in other altcoin ETF applications. On March 11, the agency postponed decisions on various altcoin-based ETFs, including those for Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA). Additionally, it delayed filings from Grayscale, Bitwise, and 21Shares, as well as staking proposals for Ethereum ETFs.
Despite the delays, the SEC acknowledged new filings, such as Grayscale’s Hedera (HBAR) ETF and Bitwise’s DOGE-related proposal. Franklin Templeton also entered the altcoin ETF race by filing an S-1 Form for an XRP ETF.
Bloomberg ETF analyst James Seyffart stated that these delays were expected, describing them as a “standard procedure.” He noted that the final deadlines for SEC decisions on all pending ETF applications fall in October 2024, and the likelihood of approval remains high.
Seyffart and Bloomberg’s senior ETF analyst Eric Balchunas estimated approval odds for various altcoin ETFs earlier this year. Litecoin leads with a 90% probability of approval in 2024, followed by Dogecoin at 75%, Solana at 70%, and XRP at 65%. These odds have risen significantly compared to the pre-election period in November 2023.
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Solana and Altcoin ETF Delays Continue as SEC Extends Review Process
- The SEC has delayed its decision on VanEck’s spot Solana (SOL) ETF, citing market assessment.
- Similar delays were issued for other altcoin ETFs, including Dogecoin, XRP, Litecoin, and Cardano.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on VanEck’s proposed spot Solana (SOL) exchange-traded fund (ETF). This delay aligns with the regulator’s cautious approach to cryptocurrency ETFs, emphasizing investor protection and market stability.
The SEC’s decision to delay the Solana ETF was widely anticipated, as the agency continues to assess various crypto-related investment products. Historically, the SEC has cited concerns about market volatility, regulatory scrutiny, and custody security when evaluating crypto ETFs.
The postponement does not mean rejection. Instead, it extends the review period, allowing the SEC more time to evaluate VanEck’s proposal and its potential impact. The approval of a spot Solana ETF could set a precedent for other altcoins, prompting the SEC to proceed cautiously.
SEC’s Broader Crypto ETF Delays
The SEC’s decision on VanEck’s Solana ETF comes amid broader delays in other altcoin ETF applications. On March 11, the agency postponed decisions on various altcoin-based ETFs, including those for Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA). Additionally, it delayed filings from Grayscale, Bitwise, and 21Shares, as well as staking proposals for Ethereum ETFs.
Despite the delays, the SEC acknowledged new filings, such as Grayscale’s Hedera (HBAR) ETF and Bitwise’s DOGE-related proposal. Franklin Templeton also entered the altcoin ETF race by filing an S-1 Form for an XRP ETF.
Bloomberg ETF analyst James Seyffart stated that these delays were expected, describing them as a “standard procedure.” He noted that the final deadlines for SEC decisions on all pending ETF applications fall in October 2024, and the likelihood of approval remains high.
Seyffart and Bloomberg’s senior ETF analyst Eric Balchunas estimated approval odds for various altcoin ETFs earlier this year. Litecoin leads with a 90% probability of approval in 2024, followed by Dogecoin at 75%, Solana at 70%, and XRP at 65%. These odds have risen significantly compared to the pre-election period in November 2023.
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