Based on latest reports, the US Securities and Exchange Commission (SEC) is asking applicants for spot Solana exchange-traded funds (ETFs) to resubmit their filings by the end of July. This could mean an accelerated timeline for approval; before the October 10 deadline. If approved, Solana (SOL) would join the league of Bitcoin and Ethereum.
- SEC is Open to Solana Spot ETF
- Institutional Momentum Builds as October Deadline Approaches
- Why Solana is a Natural ETF Candidate
- Conclusion: What’s Next for Issuers and Investors
- FAQs
- What is the SEC asking issuers to refile?
- Why the July deadline?
- What happens after SEC approval?
- Are all Solana ETF issuers guaranteed approval?
- Glossary
SEC is Open to Solana Spot ETF
Multiple reports including CoinDesk have said the SEC has reached out to issuers: VanEck, Grayscale, 21Shares, Franklin Templeton and Bitwise; to ask them to amend and resubmit their S-1 filings. Officials say the Commission is showing more willingness to engage with Solana ETF applicants and clear the bureaucratic hurdles that have held up past crypto-related filings.
Blockworks previously reported the SEC was also open to staking features in the Solana ETFs. Notably, this is the same as the recent approval of the REX-Osprey SOL Staking ETF (ticker: SSK), the first US-listed investment product to offer Solana exposure and staking. The SSK fund launched last week, and as a result, the SEC is warming up to SOL-based products.
Institutional Momentum Builds as October Deadline Approaches
As the month speeds by, asset managers are expected to move quickly to meet the SEC’s requirements. October 10 is still the expected deadline for the first round of Solana ETF applications. If approved, spot Solana ETFs would give investors direct exposure to SOL without self-custody, and further legitimize the token.
Several ETF experts at Bloomberg Intelligence like James Seyffart and Eric Balchunas estimate Solana ETFs have a 90-95% chance of approval this year. They also put similar odds on Litecoin and XRP ETFs pending SEC guidance and market conditions.
“Given the crypto ETFs are in a favorable environment after Bitcoin and Ethereum approval, Solana is next in line,” Seyffart wrote on X in late June. “Its strong dev activity and growing ecosystem make the case.”
Why Solana is a Natural ETF Candidate
Solana’s on-chain performance, dev activity and cost efficiency have made it a standout among Layer-1 blockchains for a long time. With consistent throughput and faster tx speeds, Solana has attracted a wide range of applications from DeFi to NFTs and gaming.
More importantly, institutional players have already started to get exposure through structured products and funds overseas. A U.S. spot ETF would open up Solana to traditional capital and retirement accounts, and potentially increase liquidity and long-term adoption.
Conclusion: What’s Next for Issuers and Investors
ETF issuers now have to update and resubmit their applications to the SEC by July 31st. While the SEC hasn’t committed to approval, their proactive engagement is a big change from past behavior.
If spot Solana ETFs are approved by Q4, it could bring in fresh institutional money into the altcoin market and solidify Solana’s position as one of the top digital assets recognized by U.S. regulators. Until then, all eyes are on the SEC’s next move and whether Solana will finally get its spot ETF.
Summary
The SEC has told issuers of Solana spot ETFs, including Grayscale, VanEck, Bitwise and Franklin Templeton to refile their S-1 applications by July 31st, ahead of a potential approval by October 10th. This follows the SEC’s recent approval of staking-enabled Solana products. If the Solana spot ETF gets approved, it will join Bitcoin and Ether as U.S.-regulated spot crypto ETFs.
FAQs
What is the SEC asking issuers to refile?
They are asking for amended S-1 registration statements to include full-coverage disclosures around staking, risk controls and governance frameworks for Solana ETFs.
Why the July deadline?
SEC wants to complete the review by the October 10th rule-making deadline, which determines if certain crypto assets can be offered as ETFs.
What happens after SEC approval?
Once approved Solana spot ETFs can list on major exchanges. Funds will then trade just like Bitcoin or Ethereum ETFs; 24/7 on public markets.
Are all Solana ETF issuers guaranteed approval?
While the Bloomberg analysts say 95% approval rate, each application still needs to meet the updated disclosure requirements around staking, custody and compliance protocols.
Glossary
Solana spot ETF: A fund that holds Solana tokens directly for retail and institutional investors to buy SOL through traditional brokerage accounts.
S-1 Form: A comprehensive SEC registration document detailing the fund’s structure, disclosures and investor risks.
Staking: Locking crypto tokens (e.g. SOL) to support a blockchain’s security in exchange for rewards.
Spot ETF: A fund that holds the actual assets (not futures) investors are looking for exposure to.
Fast-track review: A process where issuers may get priority treatment or accelerated timeline from the regulators.
Sources
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