• Solana has misplaced some bullish momentum in latest months.
• SOL's decline coincided with the withdrawal of the Solana ETF software.
• Optimists imagine that SOL's decline is solely consolidation.

Ambitions for a Solana ETF have light in latest months, reflecting the general crypto market's battle to take care of upward momentum. However the lack of progress on the Solana ETF is especially regarding given the rally in altcoins up to now and the fading try at an Impulse ETF that seems unlikely to come back to fruition.

ETF Hurdles and Market Realities

Bloomberg ETF analyst James Seifert outlined the challenges the Solana ETF faces. In line with Seifert, the Solana ETF's issuer must file a prospectus and get approval from the Division of Company Finance. Nonetheless, he famous, the issuer must meet “19 pre-conditions.”

The latest withdrawal of Cboe's “19 befores” submitting for the Solana ETF additional highlights the regulatory hurdles, and Seifert speculates that the SEC's classification of Solana as a safety in varied lawsuits could have influenced the choice.

Additionally learn: Solana ETF Regulatory Suspension: Consideration turns to MEEK Memecoin

Sui Chun, CEO of Kraken-owned index supplier CF Benchmark, not too long ago mentioned {that a} Solana ETF won’t occur. At greatest, he believes that even when it does occur, a Solana ETF wouldn’t launch on the identical foundations as Bitcoin and Ethereum. The rationale Chun doesn't imagine a Solana ETF will occur is as a result of there may be presently no notable, regulated Solana futures market.

Chung in contrast Solana to different current cryptocurrency ETFs, emphasizing that Bitcoin and Ethereum had been listed on the world's largest derivatives market, CME, years earlier than the SEC accepted the ETFs. Consultants asserted that Bitcoin and Ethereum futures contracts should not flawed, and that the SEC's approval of the ETFs was inevitable.

Notably, Cboe’s withdrawal of the Solana ETF software coincided with the altcoin’s latest downturn. SOL has encountered resistance a number of occasions since surpassing $200 in March.

Additionally learn: Polygon and Solana Face Key Assist Ranges: Will They Maintain or Fall?

Solana worth is going through vital resistance in its try and surpass $200. On the time of writing, SOL is buying and selling at $129.34, down 25% over the previous two weeks.

Regardless of the present challenges, Solana proponents see this as a interval of worth consolidation, and so they imagine the altcoin is poised for a robust bounce again as soon as the general cryptocurrency market regains bullish momentum.