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CF Benchmarks CEO Sui Chung has dampened speculation about a Solana ETF approval, citing a lack of a regulated futures market as the key obstacle. This news has led to a 1.4% decline in SOL’s price over the last 24 hours.
Solana ETF Faces Major Regulatory Hurdles
Dispelling public excitement about a debut, Sui Chung, CEO of CF Benchmarks, has characterized Solana ETFs as a non-starter.
Coingape claims that before approving additional items, Chung referred to prior regulations outlined by the Securities and Exchange Commission (SEC). As the possibility of a spot exchange-traded fund (ETF) for the asset remains uncertain, the price of SOL has fallen.
Speculation on Solana ETFs Grows
Speculation that Solana ETFs will be the next cryptocurrency exchange-traded fund (ETF) to receive regulatory approval is growing among industry insiders. Owners of SOL, the fifth biggest digital crypto asset, anticipate that the market will see an influx of capital due to an approval.
Some pre-existing requirements have not been satisfied, according to Sui Chung, thus, Solana-based ETFs will not happen.
“Solana ETFs are not going to happen, or at least, it won’t happen on the same basis as how Bitcoin and Ether happened.”
Unregulated Futures Market Stops Solana ETFs
Crypto ETFs for domestic exchanges cannot exist in the absence of a well-regulated futures market, which Chung brought up in reference to the unregulated Solana futures market, as hinted at in the SEC announcement. In spite of this, those who are enthusiastic about Solana remain hopeful that the items will be approved, opening a new investment opportunity for familiar investors.
Futures for Bitcoin and Ether were placed on the CME in 2017 and 2021, respectively, paving the way for their future acceptance. “…and there’s been no disorder in those contracts… when you have futures that trade without market disorder, there’s no reason to not have spot ETFs.”
Solana Faces Price Drop Amid ETF Delays
With a loss of 1.4% in the past day, the price of Solana is currently trading at $130.20 as of this writing. Despite SOL's reputation for outperforming the market, the company has recently struggled as a result of negative macro conditions. SOL's performance this year has been superior to that of BTC and ETH; a spot ETF would strengthen its numbers in anticipation of forthcoming bullish developments.
After hitting fresh highs in the first quarter of 2024, spot Bitcoin ETFs have continued to receive inflows. Because of this, Solana holders are hoping for a similar outcome if the funds are authorized.
