SEC Delays Solana ETF Decision Amid Rising Investor Interest
By: Eva Baxter
The U.S. Securities and Exchange Commission (SEC) has decided to extend the review period for multiple spot Solana exchange-traded fund (ETF) proposals from Bitwise, 21Shares, and Canary Capital. Initially filed for evaluation earlier this year, the regulatory body cited the need for additional time to assess the applications and the complex issues they present. This further delay pushes the decision to mid-October, marking the maximum allowable 60-day extension as stated in the SEC's procedural guidelines.
Bloomberg ETF analyst James Seyffart remarked on the improbability of further extensions, indicating that the SEC has reached its extension limit for this review cycle. Seyffart noted, “We’re expecting standard spot Solana ETFs to be approved by mid-October at the latest,” adding optimism for approval due to the current administration’s pro-crypto stance and an observed inclination towards cryptocurrency from within the Commission itself.
In the meantime, the U.S.'s first Solana staking ETF, the REX Shares Solana Staking ETF (SSK), is witnessing a spike in investor interest. On August 14, SSK reportedly achieved record inflows of $13 million through a remarkable daily trading volume of $66 million. According to data analytics from Farside Investors, the fund has accumulated assets exceeding $150 million merely six weeks post-launch. This surge underscores an escalating demand for Solana-based investment instruments amidst the current volatile crypto market conditions.
Despite the burgeoning interest in Solana and other related financial products, the spot market value of Solana itself has experienced a decline, falling 6% to $191 at the time of reporting. This downturn is seemingly in line with a broader market correction impacting major cryptocurrencies like Bitcoin and Ethereum, reflecting an ongoing market volatility. Investors remain watchful as regulatory decisions and market dynamics continue to shape the landscape of crypto investment opportunities.
