Despite a recent CAD $25 million (USD $17.4 million) investment in the Solana ecosystem by Sol Strategies, CEO Leah Wald believes a Solana ETF (exchange-traded fund) is unlikely to receive US regulatory approval anytime soon. This statement comes on the heels of the firm’s announcement earlier this week regarding their significant investment.
Wald, speaking ahead of the new year, highlighted Sol Strategies’ focus on advancing its business strategy. While expressing strong optimism for the Solana ecosystem, driven by observed developer activity and community enthusiasm, she remains cautious about the prospects of a US-based Solana ETF.
“I think there’s quite a while until a SOL ETF gets approved,” Wald stated. Drawing on her experience as a former issuer, she explained the lengthy process involved in working with regulatory staff and educating them about the underlying asset. This educational period, she estimates, could take up to a year, allowing potential issuers to thoroughly explain Solana’s merits and benefits, and provide regulators ample time to assess the asset’s maturity.
Wald predicts that Canada may approve a Solana ETF from 3iQ before the US, citing the Canadian issuer’s history of being “always ahead of the US.”
When pressed about the possibility of a crypto-friendly regulator accelerating the ETF approval process, Wald expressed caution. She suggested that a sudden blanket approval of all crypto ETFs would be “dangerous.” Instead, she advocates for a regulator willing to invest time in understanding the nuances of different cryptocurrencies, such as the distinctions between Solana and Ripple, and engage in dialogue with potential issuers before granting approvals. Wald believes this measured approach is crucial for responsible market development and investor protection.
