- The SEC has requested Solana ETF issuers to submit revised S-1 types inside every week, with suggestions anticipated inside 30 days.
- Regulatory discussions now embrace staking and in-kind redemptions, with July approval doubtlessly on the desk.
- With CME SOL futures already reside and main asset managers onboard, optimism is excessive for a spot Solana ETF launch this 12 months.
The U.S. Securities and Trade Fee seems to be accelerating the approval course of for a possible Solana (SOL) exchange-traded fund, in line with sources aware of the matter. The company has reportedly requested issuers to submit revised S-1 types inside the subsequent week — a notable step that alerts rising regulatory engagement.
Two of the sources informed Blockworks that the SEC plans to situation feedback inside 30 days after the up to date filings are submitted. These updates are anticipated to concentrate on in-kind redemption buildings and the issuers’ plans for staking — a key element, because the SEC appears open to permitting staking to be built-in into SOL-based ETFs.
One supply estimated that this momentum might push approvals by inside the subsequent three to 5 weeks. Bloomberg Intelligence’s James Seyffart echoed the optimism, suggesting that approval might come as early as July. “We expect the SEC might now concentrate on dealing with 19b-4 filings for Solana and staking ETFs sooner than deliberate,” he wrote in a observe.
A Crowded Area of Issuers
Curiosity in a Solana ETF has been heating up, with massive names like Constancy, Franklin Templeton, VanEck, Grayscale, Bitwise, Canary Capital, and 21Shares all submitting proposals. Grayscale, particularly, is taking the identical path it adopted with its Bitcoin and Ethereum funds, aiming to transform its present SOL Belief right into a spot ETF.
Whereas the SEC delayed a call on Grayscale’s Solana ETF simply final month, it did formally acknowledge the 19b-4 submitting in February — one thing Seyffart referred to as “vital,” given the company’s previous hesitance. “We’re below the idea that the majority, if not all, [crypto ETF filings] will probably be accredited this 12 months,” he stated. “Some, presumably sooner than others.”
Seyffart additionally identified that each Solana and XRP have already got derivatives-based ETFs, which usually clear one of many SEC’s key hurdles for approving spot variations. “So I might simply be completely and completely shocked if the SEC does one thing to not enable a spot XRP or spot Solana ETF to launch,” he added.
Futures Market Provides Gas
The CME’s launch of SOL futures in February is seen as a serious catalyst. That’s the identical setup seen earlier than the approval of Bitcoin and Ethereum ETFs, making it a bullish signal for SOL. Since then, a lot of Solana futures ETFs have rolled out, together with two launched by Volatility Shares.
Whereas the official deadline for the SEC to decide is in October — because of the 240-day overview interval — many business insiders consider approval might occur far sooner. “The groundwork is principally laid,” one supply stated. “It’s only a matter of timing now.”