Nikolas Sargeant
The US Securities and Exchange Commission has instructed spot Solana ETF issuers to submit updated S-1 filings by mid-June, signaling potential momentum toward approval according to industry sources cited by Blockworks.
The regulatory agency has specifically requested prospective issuers clarify procedures for in-kind redemption mechanisms while reportedly remaining open to allowing staking components within these investment products. This development represents significant progress in the Solana ETF approval process, with the SEC committing to provide feedback on updated filings within 30 days of submission.
Major financial institutions including Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, Franklin Templeton, and Fidelity have already submitted S-1 registration statements for their respective Solana ETF proposals. The coordinated filing update request suggests the SEC is actively working toward comprehensive review completion rather than indefinite delays.
The agency's willingness to consider staking features within Solana ETF structures marks a notable departure from traditional ETF frameworks, potentially creating new precedents for cryptocurrency-based investment products incorporating blockchain network participation rewards.
Bloomberg Analyst Predicts Strong Approval Probability
Bloomberg senior ETF analyst James Seyffart maintains optimistic projections for Solana ETF approval prospects, assigning 90% approval odds for both Solana and Litecoin ETFs during 2025. His analysis suggests early Q4 2025 represents the most realistic approval timeline despite ongoing regulatory processes.
"Delays on spot crypto ETFs are expected," Seyffart explained via social media. "If we're gonna see early approvals from the SEC on any of these assets — I wouldn't expect to see them until late June or early July at absolute earliest."
The analyst's predictions extend beyond Solana, with XRP ETF approval receiving 85% probability while other altcoins including Dogecoin and HBAR maintain 80% approval chances for 2025. These optimistic assessments reflect Seyffart's belief that the SEC increasingly views these digital assets as commodities rather than securities, significantly improving approval prospects.
Commodity classification represents crucial regulatory distinction, as securities face substantially more stringent oversight requirements compared to commodity-based investment products under existing regulatory frameworks.
Grayscale Leverages Proven ETF Conversion Strategy
Grayscale plans implementing its successful Bitcoin and Ethereum ETF conversion blueprint for Solana, aiming to transform its existing SOL Trust into a regulated spot ETF product. This proven strategy previously facilitated smooth transitions for the company's flagship cryptocurrency investment vehicles.
The SEC formally acknowledged Grayscale's spot Solana ETF proposal in February, though the agency delayed its decision in May without reaching definitive conclusions. Similarly, the regulator postponed decisions on SOL ETF proposals from Bitwise and 21Shares, citing needs for additional time addressing technical details, legal questions, and investor protection considerations.
Meanwhile, international markets demonstrate growing Solana ETF acceptance, with Brazil's regulatory authority approving the world's first spot Solana ETF in August 2024. The country subsequently approved a second Solana spot ETF from asset manager Hashdex, establishing precedent for Solana-based investment product viability in regulated markets worldwide.
