Well, here we go again. The U.S. Securities and Exchange Commission (SEC) is making us wait a bit longer to find out whether Solana-based exchange-traded funds (ETFs) are going to hit the market or not. The SEC has decided to use its maximum 60-day extension power, setting a new final deadline for a decision by October 16. Now, I know what you’re thinking: not this again. But hey, it’s not just Bitwise and 21Shares that are stuck in this limbo. Canary Funds and Marinade Finance are also caught up in the delay game.
The SEC's Reasoning
The delay, which was officially announced on Thursday, is due to the SEC needing "sufficient time to consider" changes to BZX Rule 14.11(e)(4), which handles eligibility, disclosure, and surveillance requirements for exchange-traded products that are backed by physical commodities. In other words, they're tying up all the loose ends before letting Solana’s ETF dreams come true.
Solana's Market Maturity, but Still Some Concerns
Now, while Solana’s market infrastructure has matured with better liquidity, custody solutions, and growing institutional interest, there are still some big, looming questions. Regulatory classification and network stability are still major concerns that haven’t been fully resolved. As Shawn Young from MEXC Research pointed out, these are unresolved issues that are casting a shadow over the whole process.
The Countdown Begins
Solana ETF proposals were initially filed back in January, and after some public comments and the usual waiting game, we’re now facing the last-ditch extension. This is the SEC’s final allowable 60-day delay, so after this, there’s no more dragging its feet. If you’re hoping for Solana ETFs this year, this deadline is basically it.
The Big Question: Security or Commodity?
But here's where things get juicy. The SEC’s move to extend probably comes down to the big question: Is Solana a security or a commodity? That’s not just a trivial concern. It has massive implications for the entire crypto market. As Vincent Liu from Kronos Research points out, this decision will likely set the tone for all future altcoin ETF proposals. So, no pressure, right?
Traders Speculate Ahead of the Deadline
Meanwhile, traders are already getting antsy. Some are betting that Solana’s ETF is just about to get the green light, speculating on the asset ahead of the final decision. In fact, it’s shaping up to be a pretty strategic deadline for everyone involved. Will Solana lead the way or will this be another bump in the road for altcoin-linked ETFs?
Other Market Players Adjust Their Strategies
Looking at other market players, it’s interesting to note that while Bitwise and 21Shares are waiting for their shot, the likes of ProShares, Grayscale, and VanEck have made adjustments to their filings to better align with SEC guidelines. And let’s not forget BlackRock; despite their massive influence in the industry, they’ve confirmed they’re holding off on any Solana ETFs for now, probably because they’re content with their Bitcoin and Ethereum ETFs for the time being.
Will Solana ETFs Be Approved This Year?
So, will we see a Solana ETF approved this year? Some optimists, like Bloomberg’s James Seyffart, are hopeful, predicting approval by mid-October. Time will tell, but I have to say, things are looking interesting. Will Solana ETFs finally make their debut, or will they keep us hanging a little longer? I guess we’ll find out soon enough.
Roman Zaika
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