Solana ETF Approval Faces Extended Review as SEC Seeks Public Consultation

Highlights:

• The SEC is postponing the decision on Solana ETFs and allowing for public comments on the review.
• Bitwise and 21Shares, along with other firms, are having to wait longer for the SEC to make a decision.
• There’s a 90% likelihood that Solana ETFs will get approval due to careful regulation.

Several applications for Solana ETFs have been delayed by the U.S. Securities and Exchange Commission (SEC). This consists of products from Bitwise, 21Shares, Canary Capital, VanEck, and Fidelity. As a result, the SEC has opened a period to allow the public to share their opinions on the proposals. The decision is based on routine evaluation by the regulator to ensure that companies comply with the Securities Exchange Act regarding risk to investors and potential fraud.

The filing aims to give investors a regulated option for SOL, which is native to Solana. Each proposal is designed to track the value of SOL by considering prices from the CME CF Solana-Dollar Reference Rate and the MarketVector Solana Benchmark Rate. The approval would lead these ETFs to be traded on exchanges like Cboe BZX. However, because the SEC once viewed Solana as an unregistered security, doubts remain about how it will be approved.

SEC POSTPONES DECISION ON SPOT SOLANA ETFS

– The U.S. Securities and Exchange Commission (SEC) delayed its ruling on spot Solana ETF applications filed by major players including VanEck, 21Shares, Fidelity, and Bitwise.

KEY DETAILS:

– The regulator initiates proceedings to… pic.twitter.com/ETOvYO1kAp

— BSCN (@BSCNews) May 20, 2025

Solana ETF Regulatory Review and Market Implications

There have been several extensions given to the SEC for reviewing the Solana ETF applications. The original date for the ruling was set for April, but the SEC delayed the ruling in March and then again on May 19 and decided to start the “proceedings” for further discussion. By taking this step, no conclusions are drawn, but it allows for comments from stakeholders.

The SEC continues to address the issue of market manipulation and defends investors. Despite having more applications for Solana crypto ETFs, the agency has decided to move cautiously. At the same time, regulators are hesitant about approving altcoins for ETFs, even as approvals for ETFs based on Bitcoin and Ethereum were granted.

Bloomberg analysts predict that there is a 90% likelihood that the Solana ETF will be approved by 2025. Their belief in Solana’s future is built around it being viewed like a commodity and increased interest from institutions. As a result, approval in July is now considered likely only 16% because of the regulator’s need to review the situation in more detail.

NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We're putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.

Here's the table with the odds and some other details: pic.twitter.com/xaXaNXLb0M

— James Seyffart (@JSeyff) February 10, 2025

Broader Context of Crypto ETF Delays

Several other crypto ETF filings have faced similar situations. The agency has likewise delayed making decisions about Dogecoin, XRP, Litecoin, and Cardano ETFs. The delays show that the agency is aiming to use the same set of standards for digital asset products. The Fidelity Solana Fund will be under evaluation until July 8. Besides the Bitwise and 21Shares proposals, the SEC is still reviewing them in the face of swiftly changing regulations.

The SEC’s current pace in reviewing Solana is the result of its status as an unregistered security under Gary Gensler, the former SEC chair. The present comment period can have an impact on the regulator, based on what happened with Ethereum ETFs, where most comments advocated for innovation.

Investors and asset managers continue to wait for the SEC’s decision, as it delays its plans toward the 2025 deadline. Since the commission focuses on stopping fraud against investors, it takes more time to accept Solana ETFs and other crypto products.