Solana ETFs face SEC rejection roadblock

Solana U.S. ETFs may face approval delays amid a transition in federal government and agency leadership.

Some spot Solana (GROUND) issuers of exchange-traded funds have been informed of upcoming hurdles to their applications by Securities and Exchange Commission staff, Fox Business’ Eleanor Terrett said on X, quoting inside the sources.

Issuers were reportedly told that the SEC would not consider new cryptocurrency ETF offerings until Donald Trump takes office, leaving Solana spot funds in limbo until January 2025. Until now, five companies, including VanEck, 21Shares, Bitwise, Canary Capital and Grayscale, have submitted applications,

Reports of delays in 19b-4 filings, also known as proposed rule changes, came despite the Solana spot funds’ supposed progress in late November. At the time, companies sharp to SEC comments and dialogue with agency staff on the progress of Form S-1 filings, a formality in securities registration for ETFs.

Issuers like WisdomTree have sought to develop the existing suite of crypto products, encouraged by the success of the Bitcoin spot (BTC) ETF and progress made by spot Ethereum (ETH) ETFs in recent weeks.

Spot Bitcoin ETFs have been a breakout story of the year, generating $109 billion in assets since January and exceeding dormant assets attributed to Bitcoin creator Satoshi Nakamoto. The issuers also filed documents to list the spot (XRP) ETF, as Ripple activity seemed increasingly strong with stablecoin plans amid a changing political climate and a new regime in the White House led by pro-crypto President-elect Donald Trump.

Yet Wall Street executives like BlackRock and Fidelity have deferred to join the race to list crypto ETFs outside of Bitcoin and Ethereum.