SEC Pauses Solana ETFs Approval For Now

SEC Pauses Solana ETFs Approval For Now

The US SEC recently engaged with potential issuers of Solana ETFs to discuss concerns regarding Solana's classification as a security. Following these discussions, the SEC and Cboe BZX decided to remove related 19b-4 filings, pausing the approval process for now. This decision was anticipated by market observers, as the SEC has previously referred to Solana as a security.

Although Ethereum and Bitcoin ETFs have been approved, the likelihood of Solana ETFs gaining approval under the current administration remains slim. VanEck and other issuers may attempt to make a stronger case in future filings, arguing that Solana should be classified as a commodity. According to various analysts, a Solana ETF won't be possible under the current administration.

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Democratic Party Platform Silent on Crypto Regulations

The Democratic National Committee (DNC) opened its official platform, which excludes any mention of crypto or blockchain. This omission stands in stark contrast to the Republican platform, which includes several pro-crypto statements. Despite recent signals from Democrats that they are open to engaging with the crypto industry, their platform’s silence on the issue may push crypto-focused voters away.

The Biden-Harris administration has previously taken a tough stance on crypto, with numerous enforcement actions against major industry players. As Vice President Kamala Harris becomes the frontrunner for the Democratic nomination, some party members hope her administration will adopt a more balanced approach to the industry.

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Bitwise Expands to Europe with ETC Group Acquisition

American crypto asset manager Bitwise has expanded its reach into Europe by acquiring London-based ETC Group, a firm known for its digital asset exchange-traded products (ETPs). This acquisition allows Bitwise, which already manages $4.5 billion in assets, to offer European investors exposure to leading cryptocurrencies like Bitcoin, Ethereum, and Solana.

The move is part of Bitwise's broader strategy to serve a global clientele and enhance its product offerings with innovative ETPs. With this acquisition, Bitwise strengthened its reputation as a sophisticated asset manager and positioned itself to compete in the growing European market. The financial details of the deal have not been disclosed, but the acquisition marks a big step in Bitwise's global expansion.

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Drift Introduces 'BET' Prediction Market on Solana

Solana's perpetual trading protocol Drift has launched BET, a new prediction market that allows traders to earn yield by betting on various outcomes. BET supports over 30 crypto assets as collateral and is integrated with Drift's DEX ($500 million liquidity pool). The platform aims to bring financialization to real-world events, offering bets on everything from localized occasions to major events.

The alpha release already features two contracts related to the US election, with a combined pool of over $300,000 at stake. BET incentivizes participation by rewarding traders with FUEL tokens and plans to expand into categories such as sports, crypto, and economics. The current leading prediction protocol, Polymarket (built on Polygon) generates around $95-100 million of open interest daily.

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Data of the Day

The Bitcoin Hash Ribbons indicator, which uses moving averages to assess miner difficulty and market stress, has signaled the potential end of miner capitulation. This signal occurs when the 30-day moving average crosses above the 60-day moving average, indicating that miners are returning to the market with more efficient equipment.

Bitcoin's Hash Rate has recently reached a new all-time high of 855 EH/s, further supporting this positive trend for miners. This is the first time such a signal has appeared since the Bitcoin halving, a significant event that reduced the block reward for miners. While not a precise predictor of price bottoms, this indicator often precedes periods of reduced selling pressure and potential price increases.

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More Breaking News

• Gary Gensler may be nominated as Treasury Secretary if Kamala Harris wins the presidential election, according to unnamed sources.
• Australia's financial regulator has taken down over 7,300 scam websites since July 2023, including 615 related to cryptocurrency investment scams.
• Gate.io's venture arm has partnered with Abu Dhabi's Blockchain Center to launch a $100-million fund aimed at advancing Web3 innovation.
• Cardano's native token ADA drops to the 11th-largest cryptocurrency by market cap after a continuous loss of market share since January.
• Tether has launched its USDT stablecoin on the Aptos blockchain to offer lower transaction costs for users compared to networks like Ethereum.
• Pump.fun is predicted to surpass $100 million in cumulative revenue after generating over 1.8 million Solana meme coins since January 2024.

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