The US Securities and Exchange Commission (SEC) has once again deferred its decision on five Solana exchange-traded funds (ETFs), extending the regulatory review process for investment products tied to Solana (SOL).
The delay impacts the Canary Solana Trust, 21Shares Core Solana ETF, Bitwise Solana ETF, VanEck Solana ETF, and Fidelity Solana Fund.
Why is the SEC Delaying Solana ETF Decisions?
The SEC’s decision on 21Shares, Canary Capital, VanEck, and Bitwise’s filings was initially due on April 4. However, on March 11, the regulatory body extended its review period, giving it until May 19 to either approve or disapprove the proposals or initiate further proceedings to determine whether the rule changes should be approved.
On May 19, the SEC did not make a final decision. Instead, the regulator announced that it will seek public comments for all the applications before ruling.
“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change,” the SEC noted.
Apart from the four filings, the SEC has also pushed the deadline for the Fidelity Solana Fund. The proposal was published for public comment on April 9. It was originally due for a decision by May 24.
Nonetheless, the SEC has decided to extend the evaluation period to July 8 to allow more time to consider the application.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the statement read.
This marks the latest in a series of delays for ETF applications. Previously, the SEC postponed its decision on a similar proposal from Grayscale, which sought to launch a Solana-focused ETF.
In addition, several XRP (XRP), Litecoin (LTC), and Dogecoin (DOGE) ETF applications have faced a similar fate. The pattern of deferrals reflects the SEC’s cautious approach to altcoin-based financial products, despite the new pro-crypto government.
The delay has also had an impact on the approval odds on Polymarket. The likelihood of a Solana ETF gaining approval by July 31 has fallen to a mere 16% on the prediction platform. However, the longer-term perspective remains optimistic, with approval chances at 85% by December.
Meanwhile, Solana’s price remained indifferent to the development. The altcoin saw an uptick of 2.7% over the past day. At the time of writing, SOL’s trading price was $169.
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