The US Securities and Exchange Commission (SEC) has reportedly decided against approving any Solana (SOL) spot ETFs during President Joe Biden’s administration. According to Fox Business correspondent Eleanor Terrett, at least two of the five Solana ETF filings have already been rejected, with the remaining facing similar outcomes. The SEC’s stance reflects the regulatory rigidity that has defined its approach to cryptocurrencies under Gary Gensler’s leadership.
Solana’s ETF Rejections Spark Investor Concerns
While Bitcoin and Ethereum ETFs have gained traction, Solana investors are left questioning whether the blockchain is missing out on significant growth opportunities. Spot Bitcoin ETFs, led by BlackRock’s iShares Bitcoin Trust (IBIT), have amassed over $17 billion in net inflows, driving institutional interest and boosting BTC’s price. Ether ETFs, though slower to grow, have still attracted $1.3 billion in inflows since their launch in mid-2024.
Without ETF approval, Solana could miss out on similar inflows and institutional attention, potentially stunting its price growth and broader adoption in traditional finance. Currently trading around $237–$240, SOL has seen a modest 2% gain in the past 24 hours. Analysts believe breaking past the $290 mark could propel it higher, but skepticism looms over its ability to reach $300 amid ETF rejections.
A Shift in SEC Leadership Could Change the Game
The crypto community is optimistic about a more favorable regulatory environment under the upcoming Trump administration. Pro-crypto voices anticipate that Paul Atkins, the SEC chair nominee, will pave the way for altcoin ETF approvals, including Solana. This sentiment echoes the shift seen during Bitcoin and Ethereum ETF approvals, which once faced similar challenges.
Industry experts argue that a regulatory framework promoting innovation could unlock Solana’s potential, allowing it to compete with Bitcoin and Ethereum on equal footing. Until then, SOL investors may continue facing hurdles as institutional inflows remain concentrated on BTC and ETH.
Should You Buy Solana?
Despite regulatory setbacks, Solana remains a promising blockchain with its high-speed transaction capabilities and growing ecosystem. Long-term investors might view current price levels as an opportunity, especially if the anticipated shift in SEC leadership drives ETF approvals. However, without immediate catalysts, SOL’s growth may lag behind its ETF-backed counterparts, making cautious optimism advisable.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and carry risks. Always conduct your own research before making investment decisions.
