SEC Slams Brakes on Solana ETFs: Bitwise, 21Shares, VanEck, and Canary Left Hanging

Regulatory Delays Hit Solana Hard

Buckle up, crypto fans! The U.S. Securities and Exchange Commission just threw a massive wrench into the works, delaying decisions on not one, not two, but FOUR Solana exchange-traded funds. We're talking about heavy hitters like Bitwise, 21Shares, VanEck, and Canary—all left in the dust.

SEC's Game Plan: More Time, More Talk

In a bombshell May 19 filing, the SEC announced they're hitting the pause button to "institute proceedings." Translation? They need more time to figure out if these ETFs pass the sniff test. They're opening up the floor for public comments and stretching out the review period. It's all about dotting the i's and crossing the t's.

No Rush to Judgment

Don't jump to conclusions just yet. The SEC made it crystal clear that this delay doesn't mean they've made up their minds. They're just taking a closer look under the hood, making sure these proposals meet the tough standards of the Securities Exchange Act, especially those bits about keeping fraud at bay and protecting investors.

Spotlight on Bitwise and 21Shares

Among the proposals left hanging is Bitwise's Solana (SOL) ETF, filed back in January through Cboe’s BZX Exchange. They're planning to hold SOL directly, tracking prices against the CME CF Solana-Dollar Reference Rate. Meanwhile, 21Shares, already rocking the crypto ETF scene with Bitcoin and Ethereum funds, threw their hat in the ring with a Solana proposal earlier this year.

Solana ETFs: Still a No-Go in the U.S.

Despite the hype, not a single altcoin ETF tied to Solana has made it past the finish line in the U.S. yet. The SEC's cautious approach to crypto investments, especially for anything beyond Bitcoin and Ethereum, is hitting the brakes hard on these delays.

What's the Holdup?

The SEC is eyeballing these proposals to see if they play nice with Exchange Act Section 6(b)(5). We're talking about protecting investors, safeguarding the public interest, and keeping those pesky fraudulent and manipulative practices at bay.

Broader Crypto ETF Bottleneck

This delay is just one piece of a bigger puzzle. The SEC's got a whole backlog of crypto ETF filings on their plate, including Dogecoin and XRP. But don't lose hope just yet. Bloomberg ETF analysts James Seyffart and Eric Balchunas are still betting big, giving Solana and Litecoin ETFs a whopping 90% chance of approval by late 2025.

The Future: A Wild Ride

They're pointing to favorable commodity classifications and skyrocketing institutional demand as the green lights. But hold onto your hats, folks—the future's still a rollercoaster. If the SEC keeps asking for more public input, investors might be stuck in limbo for even longer.