Expert: SEC will not approve Solana-ETF

After Bitcoin and Ethereum ETFs, exchange-traded fund providers will likely turn their attention to Solana. However, the US Securities and Exchange Commission (SEC) is unlikely to approve this class of products, said Bloomberg Intelligence analyst James Seyffarth.

But SEC isn't dancing around SOL's status like they have ETH. Those lawsuits against COIN and Kraken and others flat out say “Solana is a security” lol. Which could very easily make this a very rocky road

— James Seyffart (@JSeyff) May 22, 2024

According to Seyffart, it is a matter of “a couple of years” before the crypto derivatives market comes fully under the supervision of the US Commodity Futures Trading Commission. The approval of the bill “On Financial Innovation and Technologies for the 21st Century” (FIT21) can speed up this process, the expert emphasized.

However, the launch of exchange-traded funds, in particular the potential Solana-futures ETF, is under the jurisdiction of the SEC, Seyffart added. At the same time, according to him, the Commission made it clear that the Solana token refers to securities.

The expert referred to the regulator’s claims against the crypto exchanges Coinbase and Kraken. The platforms are accused of illegally promoting securities. At the same time, Solana is listed among the “problem” assets.

In the comments, one of the users noted that the token, according to the classification in FIT21, refers to goods. To this Seyffart responded as follows:

CEHV Managing Partner Adam Cochran noted, that it seems more likely to him to launch ETFs based on Litecoin and Dogecoin. Despite the fact that the trading volume and capitalization of these assets is lower, there are no problems with their classification.