The approval of spot Solana ETFs won’t go through, with the U.S. Securities and Exchange Commission (SEC) notifying two of the five prospective issuers. Reports suggest that the regulator will reject their 19b-4 filings. The SOL price has been holding firm at its crucial resistance level of $240, as skepticism draws whether it could continue the rally to $300.

US SEC to Reject Spot Solana ETF Applications

Fox Business journalist Eleanor Terret has reported that the U.S. Securities and Exchange Commission (SEC) has informed at least two of the five applicants for Solana (SOL) spot ETFs that their 19b-4 filings will be denied.

According to Terret, industry insiders believe the SEC is unlikely to approve any new cryptocurrency ETFs under the current administration. Thus despite the growing demand for crypto ETFs, the regulatory resistance for such crypto investment products continues to persist.

One user on X responded to Terret stating that the odds are still in favour of the approval. Responding to this, the journalist wrote: “The SEC won’t approve just one or a couple and not the others. Remember the bitcoin ETFs? Eleven launched on the same day”.

However, the development hasn’t surprised crypto industry veterans who expect no major development until Paul Atkins takes charge of the US SEC Chair in January. Speaking on the development, ETF Store President Nate Geraci stated:

“No surprise, but won’t be any movement on spot crypto ETF filings until new leadership in place… Lame duck”.

Geraci further added that the interesting thing is that the SEC recently acknowledged Bitwise Crypto Index ETF, which has a 4% weightage to Solana.

On the other hand, crypto industry players are turning positive for Solana ETF approval following the latest approval of David Sachs for the AI and crypto czar role at the White House. President-elect Donald Trump made the announcement official on his social media platform Truth Social.

$SOL ETF has been secured tonight basically

Not investment advice pic.twitter.com/9g82QdOtcf

— Solana Legend 🎒 (@SolanaLegend) December 6, 2024

SOL Price Rally to $300 At Risk?

While other altcoins have made a strong move triggering the altcoin season, the SOL price has remained flattish flirting around its crucial resistance $240.Furthermore, XRP overtook Solana amid a strong undercurrent from the bulls with over 50% XRP price gains on the weekly chart.

At press time, the SOL price is trading 1.68% up at $241 with a market cap of $114.569 billion. The pessimism surrounding the Solana ETF approval has yet reflected in its price. Some market analysts believe that following the recent consolidation phase, SOL is poised for a technical breakout pushing it to a new all-time high of $290-$300.

$SOL seems to be breaking out to the upside! The target is $290🎯 pic.twitter.com/XLi7w6vVfK

— The Moon Show (@TheMoonCarl) December 5, 2024

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.