Breaking: US SEC Delays Decision on Grayscale Solana ETF

Key Insights:

• The U.S. Securities and Exchange Commission (SEC) delayed Grayscale spot Solana ETF again by another 60 days.
• The SEC designated October 10 as the final date to either approve or disapprove the Grayscale Solana ETF.
• SOL price tumbled 3% after the decision to further delay the ETF.

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale spot Solana ETF, joining other altcoin ETFs facing a longer waiting period.

As a result, Solana price tumbled more than 3% over the last 24 hours, erasing the positive sentiment among traders.

US SEC Postpones Grayscale Solana ETF Approval

According to the latest US SEC filing, the government agency has extended the decision to approve or deny the Grayscale Solana ETF application to another 60 days.

Grayscale spot Solana ETF was delayed as the SEC seeks more time to further evaluate whether the proposed ETF meets listing and trading requirements under NYSE Arca Rule 8.201-E, as per the filing.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” stated the SEC.

NYSE Arca filed the request to list and trade the Grayscale Solana ETF on January 24. However, it was published in the Federal Register on February 12, making August 17 the next deadline for the SEC to make its decision.

The US SEC designated October 10 as the final date to either approve or disapprove the Grayscale Solana ETF.

SEC Delays Solana ETFs by Other Issuers

Grayscale Spot Solana ETF was first delayed by the SEC on March 11. Two days later, the commission started proceedings to approve or disapprove the proposed rule to list and trade as commodity-based trust shares.

Notably, the SEC delayed its decision on other Solana ETF applications from Fidelity, VanEck, 21Shares, Canary, Franklin, and Bitwise. Notably, these ETFs will track the spot prices of Solana.

Meanwhile, Bloomberg ETF analysts raised the odds for Solana ETF approval to 95%. Bloomberg senior ETF analyst Eric Balchunas pointed out good signs emerging as the SEC asked issuers to update their filings.

Also, the SEC requested Solana ETFs applicants to resubmit amended S-1 application forms. The request was reportedly aimed at establishing how the companies will approach SOL staking.

Notably, the SEC approved Rex-Osprey Solana Staking ETF (SSK) listing on Cboe under the Investment Company Act of 1940. The fund offers investors exposure to Solana while also generating staking rewards.

Solana Price Loses Upside Momentum

Solana price fell more than 3% in the last few hours as the US SEC delayed its decision on Grayscale Solana ETF. The price was trading at $186.87, with a 24-hour low and high of $186.18 and $194.66, respectively.

However, the trading volume has increased by 85% in the last 24 hours, indicating interest among traders. However, some analysts expect SOL price could gain massively by September, coinciding with the Fed rate cut.

According to Deribit data, traders were betting Solana price to hit $225 in August. Notably, 2,114 calls with a notional value of $4.61 million target the price.

Onchain Lens reported that a whale opened long positions in Solana and XRP with 2x leverage. SOL price was trading 4% higher at $192.65 at the time of writing, with a massive 92% increase in trading volume over the last 24 hours.

Popular analyst Ali Martinez predicted Solana price could quickly hit a new all-time high, even $300 if it holds above $200. He revealed that there was no resistance in the way to a run towards $300.