Potential Delay In Solana ETF Launch Due To SEC Approval Process

According to ShibDaily, James Seyffart, an analyst at Bloomberg Intelligence, has highlighted potential delays in the launch of Solana exchange-traded funds (ETFs) in the United States. In a recent interview with Blockworks, Seyffart indicated that despite a crypto-friendly administration, the introduction of a Solana (SOL) ETF might not occur until 2026. This delay is attributed to the U.S. Securities and Exchange Commission's (SEC) approval process, which typically spans 240 to 260 days. Additionally, ongoing SEC lawsuits against crypto exchanges, which allege that SOL may be an unregistered security, could further complicate the review process. Seyffart explained that the SEC’s Division of Enforcement classifying Solana as a security prevents other divisions from considering it for a commodities ETF wrapper. Meanwhile, President-elect Donald Trump has expressed intentions to transform the U.S. into a leading crypto hub by appointing crypto-friendly leaders to oversee key financial regulatory bodies. As part of this initiative, Trump plans to replace current SEC Chairman Gary Gensler with former SEC Commissioner Paul Atkins, who is known for his favorable stance on cryptocurrency. During Gensler’s tenure, the SEC adopted a stringent regulatory approach toward the cryptocurrency sector, initiating numerous enforcement actions against firms within the industry. In 2024, the SEC approved the listing of spot Bitcoin and Ether ETFs in January and July, respectively. However, applications for other ETFs, such as those for spot SOL ETFs, remain pending. Seyffart noted that several Solana ETF filings were made but were not acknowledged by the SEC, effectively resulting in outright denials. Last year, asset managers submitted numerous regulatory applications to launch ETFs that would hold altcoins like SOL, XRP, and Litecoin. Meanwhile, issuers are also awaiting approval for several proposed crypto index ETFs, which aim to offer diversified portfolios of digital tokens. Not everyone shares Seyffart’s outlook. In November, Matthew Sigel, VanEck’s head of digital asset research, expressed a more optimistic view, suggesting that the chances of a SOL ETF being listed in the U.S. before the end of 2025 are "overwhelmingly high." This article is intended for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.