The U.S. Securities and Exchange Commission (SEC) has reportedly rejected 19b-4 applications filed by stock exchange Cboe BZX on behalf of two potential solana (SOL)-based ETF issuers.
This decision — according to information revealed by confidential sources to The Block portal — is based on the SEC's opinion that Solana should be considered a security.
The 19b-4 applications, which are filed by the exchanges on behalf of issuers 21Shares and VanEck, have not advanced to the Federal Register, meaning they have not started the process of being approved or denied by the SEC.
The price of the SOL cryptocurrency, however, has not had any special movements due to these developments that were announced yesterday afternoon.
The market is likely awaiting some official statement from 21Shares or VanEck that would provide more certainty about the status of their applications. However, 21Shares communications director Audrey Belloff told the aforementioned news site:
“We cannot comment on the regulatory process at this time. We remain committed to expanding investor access to cryptocurrencies in the U.S. market and around the world.”
Audrey Belloff, Director of Communications at 21Shares.
Many analysts believe that SOL could be the next cryptocurrency to have its ETF in the US market. For the investment firm Galaxy Digital, "it is very likely that solana ETFs will be rejected."
