The dynamic landscape of Exchange-Traded Funds (ETFs) is witnessing developments as the US Securities and Exchange Commission (SEC) has directed potential sponsors of Solana ETFs to submit comprehensive amended registration statements by the month’s end. This request aims to expedite the review process that was initially scheduled to conclude by October 10, the statutory deadline for these applications.
Sources close to the ongoing discussions indicate that the SEC’s trading-and-markets division is eager to accelerate this timeline. “Given the recent approval of the Rex Shares product, it seems evident that the SEC is under substantial pressure to fast-track these applications rather than delay until October,” an insider noted, affirming the urgency of the matter to CoinDesk.
Solana on Track to Claim 3rd Spot in Crypto ETF Market
The impetus for this speed-up stems from the recent launch of the REX-Osprey SOL + Staking ETF (ticker SSK). Established under the Investment Company Act of 1940, SSK automatically activated in the absence of SEC objections and began trading on July 2, amassing approximately $12 million on its inaugural day. This unanticipated debut positions it as a frontrunner in a competitive landscape the SEC has historically attempted to neutralize by simultaneously approving rival crypto funds, akin to its strategies for spot Bitcoin and Ether ETFs.
Concurrently, the SEC is re-evaluating its overarching framework for digital asset Exchange-Traded Products (ETPs). A recently released 12-page guideline delineates expectations regarding disclosure, custody procedures, staking rewards, and safeguards against market manipulation. Furthermore, staff are working on a universal template that is expected to replace the individualized Form 19b-4 waivers that previously governed all spot crypto ETF listings. “The SEC aims to establish a consistent rule applicable across all listings and is currently refining the wording in collaboration with exchanges,” stated a senior executive engaged in the deliberations, adding that this new approach could potentially reduce approval timelines to around seventy-five days.
Market analysts on X perceive the ongoing exchanges positively. “Another delay is in the works. Fidelity’s Solana ETF application has just been postponed as anticipated. We await significant progress from the SEC concerning a generalized digital asset ETP framework,” remarked James Seyffart from Bloomberg Intelligence following one recent procedural postponement. Nate Geraci, president of ETF Store, reiterated this sentiment, highlighting that while the development of the regulatory framework is confirmed by Reuters, some issuers anticipate that actual approvals may not materialize until the early fall.
Even if the template is not finalized prior to September, legal experts emphasize that the SEC could still approve a Solana fund under current regulations as soon as August. Alongside the revision process, the SEC is evaluating whether the Solana market demonstrates “sufficient resilience to manipulation” and if existing CME SOL futures can serve as appropriate surveillance alternatives, a criterion successfully met by Bitcoin and Ether in 2024 and 2025, respectively.
Currently, six firms—VanEck, Fidelity, 21Shares, Ark/21Co, Bitwise, and Hashdex—have submitted spot Solana ETF proposals. If approval occurs before October 10, Solana would become the third crypto asset for which a spot ETF has been sanctioned in the US, potentially setting a pivotal benchmark for pending filings involving XRP, Litecoin, and Dogecoin.
Market participants are already preparing for a tightly packed launch schedule. Should the SEC grant approval in late August, these products could likely debut within a few days of each other. Learning from past Bitcoin experiences, swift market entry is crucial. The urgency of this launch will depend on how efficiently the SEC manages the dual imperatives of policy uniformity and competitive equity after the unexpected SSK launch.
As of now, Solana is priced at $148.93.
