The U.S. Securities and Exchange Commission (SEC) has issued notices to two Solana Spot ETF issuers, notifying them that they will not approve their applications. These notices further add to the stringent measures that the crypto sector has faced during Gary Gensler’s tenure as the SEC chair.
FOX Business reporter Eleanor Terrett reported on this matter. Based on her post on X earlier today (Dec. 6, 2024), the US SEC is reluctant to approve crypto ETFs under Joe Biden’s regime, which is coming to an end. This news has shaken up the crypto community, raising concerns over Solana ETF approval.
Is there hope for ETF approval by the SEC?
According to a post recently shared by crypto analyst, James Seyffart, there are various firms that have filed for crypto spot ETF approval. Among them, Grayscale, VanECK, 21Shares, Canary and Bitwise are the ones that have filed for Solana ETF. These firms face uncertainty amid the news that the SEC will not be approving Solana Spot ETFs.
With Donald Trump now set to take office in Jan. 2025, crypto analysts expect a change in the strict regulations that have hindered the rise of crypto ETFs. In fact, Donald Trump recently announced the appointment of David O. Sacks as the “White House AI and Crypto Czar.” The crypto Czar will spearhead policies for the administration of AI and Cryptocurrencies.
Trump’s promises to the crypto community made it clear that his regime would ensure favourable cryptocurrency regulations. Under his leadership, investors remain optimistic that the stand-by SEC could change its stance regarding crypto ETFs.
Solana’s price movement amid the SEC ETF rejection
Solana is currently trading at $231.70, a 3.8% decline in the last 24 hours, according to coinmarketcap. This price is just below its All-Time High (ATH) of $264.18, which hit on Nov. 23, 2024.
The coin also has a market capitalization of $110.63 billion. However, Solana was recently overtaken by XRP and now ranks as the 5th cryptocurrency by market capitalization.
Solana’s RSI indicator on TradingView stands at 53, hence indicating neutral bullish and bearish positions. Nonetheless, the price of Solana could drop due to panic selling created by the SEC ETF rejection.
Solana’s RSI. | Source: TradingView
Bitcoin ETFs and ETH inflows grow higher; Solana investors missing out
Data on SosoValue shows that the US BTC spot ETF inflows reached a cumulative total of $33.06 billion on Dec. 5, 2024. The daily inflow on the same date was $766.66 million, which is the highest single-day inflow for the week.
On the other hand, the US ETH spot ETF recorded inflows totaling up to $428.44 million in the same period. This ETF has a cumulative net inflow of $1.33 billion. Based on performances on the two Spot ETFs, Solana investors could be missing out on huge profits. As uncertainty regarding Solana spot ETFs looms, the crypto market will have to wait till next year for any updates on approval of these ETFs.
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