The U.S. Securities and Exchange Commission (SEC) has delayed the decision on ETF applications for Solana by Bitwise and 21Shares to October 16, 2025, negatively affecting the cryptocurrency market.
SEC Delay on Solana ETF Decision
The SEC has decided to delay consideration of Bitwise and 21Shares' proposals for Solana ETFs until October 16, 2025. This decision underscores the need for additional analysis from regulators amidst uncertainties in the cryptocurrency sector.
Impact on Solana Market and Liquidations
Following the SEC's announcement, the price of Solana fell from around $210 to $189. This decline was exacerbated by high U.S. inflation figures, negatively impacting investor sentiment. As a result, there were $70 million in liquidations of Solana assets across derivatives markets.
Regulatory Trends and ETF Delay History
Delays in the approval of crypto ETFs have occurred in the past, signifying prolonged timelines associated with regulatory procedures. Such delays often lead to speculative price fluctuations in related assets. Historical examples show that SEC actions can lead to significant market changes, and potential approval of the ETF may have positive long-term effects on the market.
The SEC's postponed decision on Solana ETFs highlights the importance of regulatory clarity and affects market dynamics. Financial market participants continue to monitor the situation in anticipation of clarity regarding cryptocurrency ETF approvals.
