KEY POINTS
- The SEC labeled Solana and 11 other crypto tokens as securities in its lawsuit against Binance
- The CBOE has reportedly removed its two prospective $SOL ETFs from its website
- Brazil became the world's first to approve a Solana ETF earlier this month – it approved a second fund Tuesday
Solana ($SOL) was on a roll earlier this month after Brazil became the first country in the world to approve a spot Solana exchange-traded fund (ETF), but slumped by over 2% overnight amid a report that the U.S. Securities and Exchange Commission (SEC) has rejected proposals for two prospective funds.
SEC rejects 2 $SOL ETF filings: Report
The Wall Street regulator has rejected Cboe BZX's 19b-4 filings for two spot Solana ETFs, The Block reported Tuesday, citing a source familiar with the situation. The prospective funds have since been removed from the Cboe website as per the report.
Before the report emerged, there have been concerns that the SEC may not approve filings for a $SOL ETF, considering how the regulatory agency tagged Solana as a security along with 11 other tokens in its case filed against cryptocurrency exchange giant Binance last year.
Solana dips amid report
Solana prices dipped by 2.3% in the last 24 hours as news of the rejection emerged. Data from CoinGecko shows that the digital asset is now trading at around $142 after it topped $163 last week when Brazil led the world in approving its first $SOL ETF.
The report also came a few weeks after investment management giant BlackRock's chief investment officer for ETF and index investments Samara Cohen said the company isn't keen on proposing a Solana ETF, at least "not in the near term." Basically, BlackRock believes that as of now, only Bitcoin and Ethereum have hit the standard in investability as an ETF.
BlackRock's spot Bitcoin ETF, $IBIT, is the most popular $BTC ETF in the market today. It has seen massive inflows since the funds first launched in January.
Brazil defies doubts
While questions remain about whether the SEC's reported rejection of spot Solana ETFs is related to its Binance case that designates the token as a security, Brazil continues to expand its horizons.
The country's SEC, the CVM, disclosed in its central database Tuesday that it has approved a second $SOL ETF that will be offered jointly by asset manager Hashdex – with over $960 million assets under management (AUM) – and local investment bank BTF Pactual.
Brazil's lead in the approval of the funds has triggered some questions about why the country was able to move first while the U.S. has been left behind.
The SEC has amended its complaint against Binance, and while many crypto users immediately concluded that the regulator had withdrawn its securities label on Solana and the other tokens in its Binance lawsuit, a DeFi lawyer said the amendment only provides "temporary relief."
It remains to be seen whether the SEC will clarify its views on Solana's native cryptocurrency or if it will watch Brazil continue its path toward leading broader crypto ETF adoption.
