Solana (SOL) Spot ETF – SEC Takes Action
The U.S. Securities and Exchange Commission (SEC) has taken steps regarding Solana (SOL) spot ETF applications. The agency has requested applicants to update their S‑1 filings. ETF experts interpret this move as technical preparation ahead of approval.
Timeline of the Process:
- The SEC expects to receive the updated filings within next week.
- A response will be provided within 30 days.
- Final decision is expected between early July and mid‑August.
- Normally, the S‑1 process can take up to 240 days; however, with this development, the possibility of early approval for Solana ETFs has strengthened.
Approval Probability Increasing: What Analysts Say
Bloomberg analysts Eric Balchunas and James Seyffart previously raised the approval odds for a Solana spot ETF to 90%.This week’s request for S‑1 updates is the strongest signal yet that this forecast may come true. Such requests typically are not made for proposals destined for rejection, indicating that the SEC is progressing favorably.
SEC Requested Which Updates?
The Commission has asked applicants for clarity on two technical issues:
- In‑kind redemption mechanism: Explanation of how ETF shares can be exchanged directly for Solana.
- Staking policies: Details on whether the fund will stake held SOL tokens and how that process will work.
Insiders suggest the SEC is positive toward staking inclusion. This could mean that the ETF would deliver not only price gains but also on‑chain yield.
Which Firms Applied for Solana ETF?
The filings the SEC seeks to update come from major names in crypto and the ETF industry:
- VanEck
- Grayscale
- Fidelity
- Bitwise
- 21Shares
- Franklin Templeton
- Canary Capital
These firms have played active roles in previous Bitcoin and Ethereum ETF processes and are experienced with SEC standards.
Why Solana ETFs Are So Important
An approved Solana spot ETF could be critical not only for investment but for Solana’s future:
- Institutional gateway: Large institutional funds could invest in Solana through ETF exposure.
- Staking yield potential: SEC approval for staking would open the door to yield‑based investment models.
- Perception shift: After Bitcoin and Ethereum, Solana would earn institutional credibility as an investable Layer‑1.
The SEC’s call for S‑1 updates regarding Solana ETF applications signals more than a procedural step—it points toward a potential approval in July–August. If granted, Solana could become the most significant Layer‑1 investment vehicle after Ethereum, opening a new institutional door to crypto.
