The U.S. Securities and Exchange Commission (SEC) recently rejected applications for Solana ETFs, blocking its entry into traditional financial markets. While Bitcoin and Ethereum ETFs have been approved, Solana’s unclear status as security remains a key hurdle.
This has led to debate among investors, questioning why Solana is being treated differently from other major cryptocurrencies like Ethereum and XRP.
SEC Rejects Filings: What’s the Reason?
Over the weekend, keen market watchers saw that applications for Solana ETFs from VanEck and 21Shares were removed from the Chicago Board Options Exchange (CBOE) website. These applications, known as 19b-4 forms, were never officially submitted to the Federal Register, likely due to concerns about Solana’s security status.
This move follows the SEC’s recent efforts to review the status of assets like SOL, MATIC, and ADA in its legal case with Binance. If these filings had been submitted to the Federal Register, the SEC would have had to make a decision, putting pressure on the agency. By rejecting these filings, the SEC has effectively paused any progress, suggesting that Solana ETFs may not be approved soon.
Investor Reactions: Lark Davis Questions the Decision
Meanwhile, Lark Davis, a prominent crypto investor, voiced his concerns on X, asking why Solana is being singled out when both Ethereum and XRP have been viewed as non-securities.
Despite the SEC’s decision, Solana is still an attractive blockchain project, trading at $143.46. The cryptocurrency has seen a 3% decline in the last 24 hours and a 1.37% drop over the past week. However, Solana continues to draw interest from developers and investors for its potential in decentralized applications.
Solana Price Analysis
Technically, Solana’s price remains strong, staying above key levels like the 200-day EMA and important support areas at $140 and $130. The MACD indicator is close to issuing a buy signal on the daily chart, suggesting a bullish outlook for SOL, with a potential price target of $200.
Also Check Out: Binance Delisting News: Major Cryptos Dropped Amid Market Efficiency Drive
The future of Solana ETFs is uncertain. What do you think will happen next?