The approval process for Solana exchange-traded funds (ETFs) is encountering severe obstacles in 2024, with analysts predicting almost no chance of success under the current regulatory environment. The U.S. Securities and Exchange Commission’s (SEC) refusal to advance critical filings has effectively stalled the approval process, leaving the future of these ETFs uncertain.

On Tuesday, the SEC reportedly rejected the Chicago Board Options Exchange’s (CBOE) 19b-4 filings for two proposed spot Solana ETFs, leading to their removal from the CBOE website. This setback follows ongoing discussions between the SEC and issuers regarding Solana’s classification as a security. The filings, essential for initiating the SEC’s review process, never made it to the Federal Register, halting any further progress.

Bloomberg ETF analyst Eric Balchunas explained the situation, noting that the Solana ETFs did not progress beyond the initial steps of the approval process. “A snowball’s chance in hell of approval unless there’s a change in leadership. Near-zero chance in 2024, and if Kamala Harris wins, there’s probably near-zero chance in 2025, too. The only hope, in my opinion, is if Donald Trump wins,” Balchunas commented.

Nate Geraci, President of the ETF Store, also weighed in, emphasizing the low likelihood of approval under the current administration. He highlighted the absence of CME-traded Solana futures, which he believes are necessary for any approval to occur. “The only viable path for spot Solana ETF approval would be the establishment of a clear regulatory framework that distinctly classifies which crypto assets are securities versus commodities,” Geraci stated.

Despite these challenges, Matthew Sigel, VanEck’s head of digital asset research, remains committed to launching a spot Solana ETF, drawing parallels between digital tokens and commodities like natural gas. Sigel believes this analogy could influence future ETF regulations.

With the regulatory landscape still murky, the fate of Solana ETFs in the U.S. remains highly uncertain.

Source: Solana ETF Facs Uphill Battle: Analysts Say Near-Zero Chance of Approval in 2024