The U.S. Securities and Exchange Commission has taken a significant step toward the potential approval of spot Solana exchange-traded funds (ETFs), signaling a possible shift in the regulatory landscape for crypto investment products. According to three sources familiar with the matter, the SEC has asked prospective issuers to submit amended S-1 registration forms within the next week, with the agency expected to provide feedback within 30 days of filing.
The requested updates reportedly focus on clarifying language around in-kind redemptions and staking mechanisms—a key feature of Solana’s blockchain ecosystem. Notably, the SEC appears open to allowing staking as part of these ETFs, a development that could make Solana-based funds more attractive to yield-seeking investors. One source suggested that these revisions could set the stage for approval within three to five weeks, while Bloomberg Intelligence analyst James Seyffart speculated that a decision could come as early as July.
Seyffart, who has closely tracked the SEC’s handling of crypto ETFs, noted in a recent research note that the agency may be accelerating its review process for Solana and staking-related ETFs. “We think the SEC may now focus on handling 19b-4 filings earlier than planned,” he wrote, referencing the regulatory forms required for rule changes to list new products. While the final deadlines for these decisions stretch into October, the recent push suggests regulators and issuers are actively working behind the scenes to finalize terms.
The race for a Solana ETF has drawn interest from heavyweight financial firms, including Fidelity, Franklin Templeton, VanEck, Bitwise, and Grayscale—the latter of which is seeking to convert its existing Solana Trust into a spot ETF, mirroring its successful transitions with Bitcoin and Ethereum products. However, the SEC delayed a decision on Grayscale’s filing last month, stating it had not yet “reached any conclusions” on the matter.
The regulator’s engagement with Solana ETF proposals marks a notable departure from its historically cautious stance. In February, the SEC’s acknowledgment of Grayscale’s filing was seen as a breakthrough, given its previous reluctance to even consider such applications. Seyffart called the move “significant” at the time, adding that he would be “absolutely stunned” if the SEC blocked spot Solana or XRP ETFs, especially since derivatives-based versions already exist for both assets.
Market optimism has grown in recent months, with Bloomberg Intelligence analysts raising their estimated odds of a Solana ETF approval from 70% to 90% in April. If greenlit, these funds would join the small but expanding universe of crypto exchange-traded products, offering investors a regulated avenue to gain exposure to SOL’s price movements—and potentially its staking rewards—without directly holding the asset.
As the deadline for amended filings approaches, the crypto industry is watching closely. A Solana ETF approval could further legitimize the asset class and set a precedent for other altcoins—provided regulators remain willing to engage. For now, the ball is in the SEC’s court.
