SEC Rebuffs Solana ETFs, $300 SOL Price Target at Risk

Fox Business journalist Eleanor Terret highlighted this development, adding that crypto insiders remain skeptical about the SEC approving any crypto ETFs in the near term. Notably, past precedents, such as the simultaneous launch of multiple Bitcoin ETFs, suggest that a selective approval process is unlikely.

ETF Store President Nate Geraci echoed this sentiment, stating, “No surprise, but won’t be any movement on spot crypto ETF filings until new leadership is in place.” Geraci further pointed out the SEC’s recent acknowledgment of the Bitwise Crypto Index ETF, which includes a 4% allocation to Solana.

With regulatory headwinds persisting, industry experts now look toward January when Paul Atkins is set to assume leadership as SEC Chair. This leadership transition, combined with President-elect Donald Trump appointing David Sachs as the AI and crypto czar, offers a glimmer of hope for future ETF approvals.

SOL Price Consolidates Amid ETF Uncertainty

While the broader crypto market has seen bullish momentum, Solana’s price remains flat, hovering around the critical $240 resistance level. At the time of writing, SOL is trading 1.68% higher at $241, with a market cap of $114.57 billion.

Despite regulatory skepticism, Solana’s price has shown resilience. Analysts predict that following this consolidation phase, a technical breakout could propel the price toward $290-$300. However, concerns remain about whether the lack of ETF approval might weigh down investor sentiment in the long run.

Mixed Signals for Solana’s Future

Although the immediate outlook for Solana ETFs appears bleak, there are reasons for optimism. The approval of David Sachs for a key crypto-focused role at the White House has buoyed market sentiment, suggesting a more favorable regulatory environment under the incoming administration.

Key Takeaways:

• Regulatory Hurdles: The SEC is set to deny Solana ETF applications, citing broader crypto policy resistance.

• Price Movement: SOL price consolidates near $240; analysts eye $290-$300 in case of a breakout.

• Leadership Transition: Optimism grows for ETF approvals under new SEC leadership in 2024.