SEC Holds Back Ethereum and Solana ETFs Amid Market Manipulation & Custody Concerns

The U.S. Securities and Exchange Commission (SEC) has raised concerns regarding proposed exchange-traded funds (ETFs) based on Ethereum (ETH) and Solana (SOL), potentially delaying the launch of these crypto-based investment products. The SEC’s reservations are rooted in potential market manipulation risks in less-regulated spot markets, challenges in securing digital asset custody, and questions about transparency mechanisms to prevent illicit activities.