US Crypto ETFs Face Uncertainty as SEC Delays Approvals

US fund issuers continue to push for new crypto exchange-traded funds (ETFs), including spot solana ETFs, but the Securities and Exchange Commission (SEC) is taking its time with approvals. The SEC has reportedly rejected filings from Cboe on behalf of 21Shares and VanEck, citing concerns that solana is a security, not a commodity. This contrasts with the SEC's earlier approval of spot ether ETFs, which clarified ether's status as a commodity and allowed those funds to move forward. Market experts had already predicted that solana ETFs would face delays due to the lack of a regulated futures market for solana, unlike bitcoin and ether.

Meanwhile, products that combine bitcoin and ether seem to have a better chance of approval. Franklin Templeton and Brazil-based asset manager Hashdex have recently filed for such crypto index ETFs, though the SEC has yet to clarify its stance. Analysts expect the SEC to thoroughly review these products due to their unique structure and the potential inclusion of additional crypto assets over time, which could complicate the approval process.

The SEC has already delayed its decision on Hashdex’s proposal, with a potential final ruling pushed to February 2025. Despite these uncertainties, crypto index ETFs are expected to play a significant role in future crypto investing, especially for financial advisors seeking diversified exposure for clients in the fast-growing digital asset sector. The potential for broader exposure through these funds could make them attractive options, even as the SEC continues its cautious approach.

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