The U.S. Securities and Exchange Commission (SEC) has requested organizations to revise their S-1 files for Solana ETFs, potentially impacting market dynamics.
Launch and Implications of the SSK ETF
Recently, the SSK ETF from REX-Osprey completed the necessary procedures in the U.S. and began trading. Filed under the Investment Companies Act of 1940, it was automatically approved unless the SEC intervened. This led to a surprising market entry of the product, pressuring regulators to expedite their processes.
SEC’s Stance on Crypto Products
The SEC’s approach to ETF applications for different crypto assets attracts attention. Recently, the commission unexpectedly halted the approval of Grayscale’s crypto basket ETF due to potentially XRP and ADA assets, which do not have independent ETFs. Such developments highlight the SEC's occasionally rapid progress.
Institutional Investors’ Shift Toward Solana
Solana is increasingly at the center of attention for institutional companies due to rising developer and investor interest. In June, investment bank Cantor Fitzgerald highlighted the rapidly growing interest in Solana, predicting more companies might start incorporating this asset into their treasury. Increased institutional adoption may boost demand for Solana ETFs.
Regulatory steps in the crypto asset market and the approval process of applications are becoming closely observed. SEC's prompt actions may lead to market balance and more diverse product offerings.
