Solana ETF Faces Regulatory Hurdles: Experts Explain Why Approval Remains Unlikely

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The recent removal of VanEck and 21Shares' Solana ETF filings from the CBOE website has sparked intense debate about the regulatory future of cryptocurrency-based exchange-traded funds. While SOL prices show surprising resilience, market analysts warn of persistent bearish momentum.

Key Developments in Solana ETF Applications

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Industry Leaders Maintain Optimistic Stance

Matthew Sigel, VanEck's Head of Digital Assets Research, took to X (formerly Twitter) to clarify:

"Our application remains active despite the CBOE website update. Remember that exchanges like Nasdaq and CBOE follow revised filing procedures (19b-4) for new ETFs, while issuers like VanEck handle prospectuses (S-1). Our rules haven't changed."

This statement aims to:

  1. Address investor concerns about application withdrawal
  2. Explain the separation between exchange filings and issuer documentation
  3. Reinforce commitment to the Solana ETF proposal

Understanding the Regulatory Process

The vanished filing relates to a July 9 submission where CBOE requested SEC approval for:

These 19b-4 forms represent exchange-level requirements, distinct from the S-1 registration statements filed by ETF issuers. While the website removal suggests regulatory pushback, firms can:

Market Skepticism Persists

Crypto community members like X user Sssebi express doubts:

"Experienced market participants recognize Solana's fundamental issues - that's why a SOL ETF won't materialize."

Common concerns include:

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SOL Price Analysis: Stability Amid Uncertainty

Despite the regulatory developments, SOL demonstrates remarkable price stability:

MetricValueImplication
24-hour Change+1.3%Short-term resilience
Current Price$145.37Holding key level
RSI PositionBelow neutralBearish dominance

Technical indicators suggest:

FAQ: Solana ETF Fundamentals

Q: Why did SEC likely reject the Solana ETF applications?
A: The SEC maintains strict standards for crypto ETFs, particularly regarding market manipulation prevention and custody solutions. Solana's regulatory status as a potential security complicates approval.

Q: Can issuers resubmit rejected ETF applications?
A: Yes. Firms frequently amend and refile documents addressing regulatory concerns. The process may require additional legal arguments or product structure changes.

Q: How does this affect long-term SOL investors?
A: While ETF approval would boost institutional adoption, Solana's ecosystem growth and technical improvements remain primary value drivers regardless of ETF status.

Q: What distinguishes 19b-4 from S-1 filings?
A: 19b-4 forms request exchange rule changes to list new products, while S-1 documents provide security registration details to regulators.

Q: When might we expect final SEC decisions?
A: Typical review periods extend 45-240 days from initial filing. The current delay suggests regulators are scrutinizing these applications particularly closely.

Q: Are other Solana ETF proposals pending?
A: Besides VanEck and 21Shares, no major firms have publicly filed for SOL ETFs - likely waiting for regulatory clarity from these pioneering applications.