Reports of Solana ETF Rejections Surface

SEC To Reject Solana ETF Applications, Insiders Say

Rumors that the U.S. Securities and Exchange Commission (SEC) will deny at least two solana ETF applications surfaced on Friday after Fox Business Journalist Eleanor Terrett said in a post on X that issuers had confirmed to her that the regulator had indicated it would reject their filings.

“I’ve confirmed that the SEC has notified at least two of the five prospective issuers that it will reject their 19b-4 filings for the solana spot ETFs,” Terrett said. “The consensus here, I’m told, is that the SEC won’t entertain any new crypto ETFs under the current administration.”

On Tuesday, crypto asset manager Grayscale became the fifth investment firm seeking to establish a spot solana exchange-traded fund (ETF) when it sought to convert its $120 million Grayscale Solana Trust (GSOL) into an ETF by having U.S. exchange NYSE Arca file form 19b-4 with the SEC requesting approval of the conversion.

The other four asset managers that have already submitted filings are Vaneck, 21shares, Bitwise, and Canary. Terrett did not specify which issuers had advised her of the potential rejections.

The SEC approved eleven spot bitcoin ETFs in January and subsequently greenlighted nine spot ether ETFs in July. With the addition of Grayscale’s Bitcoin Mini Trust later in the year, the U.S. now boasts 12 spot bitcoin funds.

Bloomberg Senior ETF Analyst Eric Balchunas described the rumored rejections as a “parting gift” from SEC Chairman Gary Gensler, who is openly hostile towards the crypto industry and has already submitted his resignation just as a pro- crypto Trump administration is slated to take the reins in January 2025.