The US SEC has requested more time from Bitwise and 21Shares to make a decision on the Solana ETF filing, sparking market speculation.
The US Securities and Exchange Commission (SEC) has delayed its decision on Solana ETF requests from 21Shares and Bitwise.
The delay is part of the uncertainty surrounding ETF pursuit of the broader crypto ecosystem by asset managers.
According to an update from the markets regulator, it is "initiating proceedings" for the two firms' filings starting today.
US SEC and Solana ETF bid.
A number of asset managers have filed for Solana ETFs, with Bitwise filing on the BZX exchange on January 28.
After the SEC approved the product, it initiated the first delay for the asset on March 11.
21Shares was one of the first in the industry to file for a Solana ETF in the US. Despite running spot Bitcoin and Ethereum ETF products, the firm has yet to receive approval for the current Solana fund.
As part of the newly opened proceedings, the regulator said it was opening grounds for possible disapproval in line with the Commission's existing policies as detailed in its official communication pending the decision.
The Commission is initiating proceedings to permit additional analysis of the consistency of the proposed rule change with section 6(b)(5) of the Act, which states, among other things, that the rules of the National Securities Exchange are designed to prevent fraudulent and manipulative acts and practices'' and to protect investors and the public interest.
Notably, the SEC delayed the grayscale $SOL ETF earlier this month, slowing reviews for most of the digital currency funds on its desk. Approval or disapproval is a very polarizing conversation in the market.
While Bloomberg analysts are issuing 90% approval odds for the Solana ETF, other industry leaders are still skeptical about the prospects in the coming months.
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