SEC Approaches Deadline for Four Solana ETFs: Analysts Predict Outcomes
The Securities and Exchange Commission (SEC) is nearing the January 25 deadline to decide on four Solana exchange-traded fund (ETF) applications submitted by VanEck, 21Shares, Canary, and Bitwise. While Solana enthusiasts are optimistic, experts anticipate that the SEC may defer its decision to the second deadline on March 11.
Edouard Hindi, Chief Investment Officer at Tyr Capital, expressed to DL News his expectation that the SEC will postpone approving the Solana ETFs. “We expect the SEC to delay its approval of the Solana ETF to the second deadline,” Hindi stated. This perspective aligns with the broader sentiment among analysts who believe regulatory approval will not be granted by the initial deadline.
The potential delay occurs amidst political shifts, including the election of former President Donald Trump and his appointment of Paul Atkins to succeed SEC Chair Gary Gensler, known for his critical stance on cryptocurrencies. Hindi noted, “Paul Atkins will need time to settle in before drastically redirecting Gensler’s previous digital assets strategy,” suggesting that significant regulatory changes may not be immediate.
Katalin Tischhauser, Head of Investment Research at crypto bank Sygnum, echoed the sentiment, indicating that Solana is unlikely to secure approval for a US spot-based ETF by the end of the month. “A whole process needs to take place where the SEC assesses the market in the underlying asset and this process has not even started,” she explained.
Historically, the SEC has imposed stringent requirements on crypto ETFs. Under Gensler’s leadership, the SEC required that no spot crypto ETFs be listed on US exchanges without a highly correlated, regulated futures market for the asset. While Bitcoin and Ethereum ETFs benefited from existing futures markets on the Chicago Mercantile Exchange, Solana currently lacks a regulated, US-based futures market.
However, this stance might evolve under Atkins’ leadership. Hindi remains hopeful, stating, “Over the coming few months we do believe that the bar for accepting new crypto ETFs will be lowered and think 2025 will see both a SOL and XRP ETF approved.” Alongside Solana, Bitwise, Canary, and 21Shares have also filed for XRP ETFs, signaling a broader push for cryptocurrency ETFs in the market.
Supporting this outlook, Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart predicted in December that 2025 could witness a surge in cryptocurrency ETF approvals, potentially transforming the investment landscape for digital assets.
As the SEC approaches its second deadline in March, stakeholders remain watchful of regulatory developments that could pave the way for increased cryptocurrency integration into mainstream financial markets.