The SEC’s delay of the Solana ETF underscores the regulatory body’s continued scrutiny of cryptocurrency-based investment products, impacting investor sentiment and market dynamics.
The SEC Decision on Solana ETF is On Hold, Will XRP and Polkadot be Next?
The U.S. Securities and Exchange Commission has once again delayed the approval of a spot Solana ETF proposal until October 2025. Last week, the Litecoin ETF was pushed back and the consensus suggests the regulator is taking it slow on any crypto-related product.
Why the Delay Matters
- ETFs provide deep-pocketed investors an entry for institutional adoption of cryptocurrency investments.
- As early as 2024, demand for the Bitcoin ETF pushed 75% of new bitcoin investment and its price action caused a price surge above $50,000.
- Investor Sentiment: Despite delays, Polymarket data shows an 82% chance of Solana ETF approval by December 2025.
What’s Next? June Could Be Pivotal
Other cryptocurrency exchange-traded funds (ETFs) are about to see some deadline closure by the SEC. The 21Shares and Grayscale applications for Polkadot ETF.
- Franklin Templeton will soon make its ETF decision for XRP and Bitwise’s ETF decision for DOGE by 17 June. History suggests that the SEC often times extend the review period like we saw for Bitcoin and Ethereum ETF through the years.
Why Solana ETFs Still Have Hope
Analysts expect Solana ETF inflows to take everyone by surprise, like they did with the case of Bitcoin.
Boost long-term institutional interest.
Draw in billions of regulated capital.
Make SOL an essential part of TradFi.
Ryan Lee, Chief Analyst at Bitget Research, notes.
An approved Solana ETF would arguably be a very powerful news even barring any volumes.
Market Reaction
Despite the setback, the value of Solana rose 3.5% today. With 80% of the bets placed, traders are still hoping for an approval of Litecoin ETF.
Conclusion
The SEC is not surprised, but crypto ETFs are inevitable. Cryptocurrency experts believe that approval of the Solana and 2 other ETFs will greatly increase liquidations by 2025.
