GSR Waves Away Solana\'s SEC Headwinds as Pop Researchers Shill Unregistered Security

GSR, Delphi, CoinStash, and RealVision breathlessly retweet and reblog GSR's presumptuous report hundreds of times and since June 27, the price of SOL is up about 5%.

Market-maker GSR has published a bullish report on Solana (SOL), predicting a 900% increase in its price if the SEC approves a Solana spot ETF.

While crypto influencers have widely shared the report, it's important to note that SOL is designated as an unregistered security by the SEC, which could hinder its ETF approval.

Despite this, pop researchers like RealVision, Delphi Digital, CoinStash, and Galaxy have expressed optimism about Solana, with RealVision co-founder claiming to have 90% of his liquid net worth in SOL.

According to the SEC, paragraph 370 of a public court filing states that investors viewed SOL as an investment in Solana Labs' efforts to grow the Solana protocol, which would increase demand and value for SOL.

Paragraph 362 also notes that the SEC believes SOL was offered and sold as an investment contract, making it a security, which is still applicable as of June 5, 2023, when the SEC filed its lawsuit.

This designation could complicate efforts to broker or deal SOL on US secondary markets for public investment, rendering GSR's claims moot.

21Shares and VanEck have also submitted bullish research on Solana to support their spot ETF filings.

VanEck asserts that SOL is a commodity, while another lawyer claims that nothing prevents the SEC from approving a spot crypto ETF.

21 Shares compares Ethereum's gross market value to Solana's potential long-term value capture.

GSR emphasizes its status as a money transmitter licensed in two US territories and five states, highlighting its distance from traditional brokerage or dealing roles.

Currently, only bitcoin and ether are permitted by the SEC to be wrapped in spot ETFs, with both assets having federally regulated futures markets.

However, SOL lacks this futures market, which could delay its ETF approval.

Moreover, Solana's SEC designation as an unregistered security could further complicate its ETF prospects, as neither bitcoin nor ether faced this obstacle.

After years of delays, the US Court of Appeals forced the SEC to approve spot ether ETFs or provide a non-arbitrary explanation for its rejection.

This ruling, combined with the 99.9% correlation between spot and CME futures market prices, ultimately led the SEC to approve the spot ether ETFs.

GSR dismisses these headwinds, claiming that the SEC couldn't use market manipulation or lack of information-sharing agreements to justify rejecting Solana spot ETFs.

According to GSR, such grounds would be considered arbitrary and capricious due to the absence of a federally regulated futures market for SOL.

If one wished to quickly bolster their $SOL position, this would likely serve as a good entry point... let's see! The bananas are slowly ripening...but should reach optimal ripeness in the autumn.

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