Solana ETF Hopes Take A Big Damper: CME Denies ‘Any Plans’


The
Chicago
Mercantile
Exchange
(CME)
has
no
plans
to
list
Solana
futures,
according
to
information
leaked
by
a
source
familiar
to
the
situation,
via
the
Twitter
account
db
(@tier10k).
This
news
deals
a
significant
blow
to
the
anticipation
around
a
potential
Solana
Exchange
Traded
Fund
(ETF)
in
the
US
markets.

What
This
Means
For
The
Spot
Solana
ETF
Hopes

Scott
Johnsson,
a
seasoned
finance
lawyer
at
Van
Buren
Capital,

commented
on
the
development,
emphasizing
the
regulatory
hurdles
that
Solana
faces.
He
clarified
that
while
a
Solana
ETF
does
not
require
the
CME
specifically
to
act
as
the
designated
contract
market
(DCM),
any
potential
market
would
require
a
robust
framework
with
a
Custody
and
Security
Services
Agreement
(CSSA)
and
sufficient
liquidity.
“ETF
doesn’t
need
to
be
CME
as
the
DCM
that
is
listing
(just
one
with
a
CSSA
and
liquid),”
Johnsson
noted.

How To Get Free Crypto  

However,
the
broader
context
of
ongoing

enforcement
actions
against
prominent
crypto
exchanges
like
Coinbase
and
Binance
by
the
US
Securities
and
Exchange
Commission
(SEC)
casts
a
shadow
over
the
feasibility
of
such
an
ETF.
“No
one
is
going
to
self-certify
SOL
as
commodity
futures
so
long
as
Coinbase/Binance
enforcements
are
ongoing.
Even
if
CME
(or
other
DCM)
self-certified,
the
current
SEC
could
and
would
block,”
Johnsson
elaborated.

Adding
to
the
complexity,
Johnsson
remarked
on
the
need
for
a
significant
change
in
the

SEC
administration
or
its
policies
before
Solana
could
realistically
progress
towards
an
ETF.
“SOL
really
needs
a
change
in
admin
to
have
a
shot
in
the
foreseeable
future.
Or
the
current
SEC
reversal
goes
way
further
than
anyone
is
expecting.
The
former
seems
more
likely,”
he
expressed.

The
nuances
of
the
issue
led
to
some
confusion
among
the
crypto
community.
X
user
Jonny
Moe
pointed
out
the
focus
of
the
discussion,
prompting
Johnsson
to
clarify,
“I
know,
but
the
point
is
everyone
is
focused
on
this
[a
futures
ETF
listed
on
the
CME]
as
a
prerequisite
to
an
[spot]
ETF.”

James
Seyffart,
a
Bloomberg
ETF
analyst,
concurred
with
Johnsson’s
views
regarding
the
SEC’s
stance,
adding
a
historical
perspective:
“This
SEC
isn’t
gonna
let
anyone
register
Solana
futures
with
the
CFTC
as
‘Commodities
Futures’.
They
made
that
mistake
with
Bitcoin
and
Ethereum.
I
seriously
doubt
this
admin
does
that
again.
They
would
very
likely
push
back.”

Coinbase Banner  

The
SEC
has
notably
named
Solana
in

lawsuits
against
Binance
and
Coinbase,
categorizing
it
as
a
security,
which
further
complicates
the
asset’s
regulatory
landscape
and
its
prospects
for
futures
and
spot
ETF
listings
in
the
US.

The
leak
from
the
CME
dampens
any
immediate
hope
for
Solana’s
inclusion
in
futures
markets
and
significantly
dims
the
prospects
for
a
spot
ETF
in
the
near
term.
The
SOL
price
remained
relatively
stable
in
response
to
the
news,
closely
aligning
with
the
prevailing
market
trend. At
press
time,
SOL
traded
at
$163.83.

SOL
price
hovers
around
key
support,
1-week
chart
|
Source:

SOLUSD
on
TradingView.com

Featured
image
from
Euronews,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.