SEC Accelerates Solana ETF Review Process, July Approval Possible

The United States Securities and Exchange Commission (SEC) has requested that prospective Solana spot ETF issuers submit updated S-1 filings by mid-June, according to sources familiar with the matter. This marks a significant acceleration in the regulatory review process for what could become the third spot cryptocurrency ETF approved in the US.

The SEC's request for updated filings focuses on clarifying procedures for in-kind redemptions and staking mechanisms, with sources indicating the regulator is open to allowing staking as part of these products. The agency has committed to providing feedback on the updated submissions within 30 days of receipt.

According to Blockworks, which first reported the development, the expedited timeline could put Solana ETFs on track for approval within three to five weeks of the filing updates, potentially as early as July 2025.

High Approval Odds Despite Regulatory Uncertainty

Bloomberg senior ETF analyst James Seyffart has assigned 90% odds to Solana ETF approval in 2025, placing it alongside Litecoin as the most likely altcoin ETFs to receive regulatory clearance this year. XRP follows closely at 85% approval odds, while other digital assets including Dogecoin and Hedera (HBAR) carry 80% approval chances.

However, Seyffart cautioned that early approvals remain unlikely, stating on social media that he "wouldn't expect to see them until late June or early July at absolute earliest," with early fourth quarter being a more realistic timeline.

"Delays on spot crypto ETFs are expected," Seyffart wrote, tempering expectations despite the recent regulatory activity.

Major Issuers Line Up for Launch

Seven major financial firms have filed S-1 registration statements for Solana ETFs: Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, Franklin Templeton, and Fidelity. This represents the largest cohort of issuers pursuing approval for any cryptocurrency ETF beyond Bitcoin and Ethereum.

Grayscale is expected to follow its established playbook, seeking to convert its existing Grayscale Solana Trust into a spot ETF, similar to its successful transitions with Bitcoin and Ethereum products.

The SEC formally acknowledged Grayscale's spot Solana ETF proposal in February but delayed its decision in May, citing the need for additional review time. The agency has similarly postponed decisions on proposals from Bitwise and 21Shares, noting requirements to address "technical details, legal questions, and investor-protection issues."

Staking Integration Emerges as Key Feature

The SEC's specific focus on staking mechanisms represents a potentially significant development for Solana ETF products. Unlike Bitcoin, which uses proof-of-work consensus, Solana operates on a proof-of-stake network where token holders can earn rewards by participating in network validation.

The regulator's apparent openness to including staking features could differentiate Solana ETFs from existing Bitcoin and Ethereum products, potentially offering yield generation capabilities that appeal to income-focused investors.

This development comes as the SEC under Chairman Paul Atkins has signaled greater regulatory accommodation for blockchain technologies , including explicit support for staking activities in his recent remarks on decentralized finance.

Market Response and Positioning

Solana has traded at $165.79, gaining 4.64% in the past 24 hours following reports of the SEC's accelerated review process, though the token remains down 5.51% over the past month, according to Coinmarketcap data.

As the third-largest cryptocurrency by market capitalization eligible for ETF treatment, Solana's approval would represent a significant expansion of cryptocurrency investment options for institutional and retail investors seeking regulated exposure to digital assets.

The potential July timeline, while still speculative, would position Solana ETF launches ahead of the traditional fourth-quarter window that many analysts had projected, potentially capitalizing on renewed institutional interest in alternative cryptocurrency exposure beyond Bitcoin and Ethereum.