tl;dr
The US Securities and Exchange Commission (SEC) has requested Solana ETF applicants to file amended S-1 Forms within a week, indicating an intention to respond within 30 days. The SEC is seeking clarifications on in-kind redemptions and Solana staking participation, with some openness to limited sta...
The US Securities and Exchange Commission (SEC) is accelerating its review of Solana exchange-traded fund (ETF) applications, with potential approvals expected within three to five weeks following the submission of amended filings. The SEC has requested clarifications on critical procedural aspects, particularly in-kind redemptions and Solana staking participation, indicating a willingness to permit limited staking within the ETF structure. This openness marks a significant step forward in defining how staking can be integrated into regulated investment products.
Analysts from Bloomberg have highlighted that broad crypto index ETFs, which include assets like Ethereum and Solana with staking components, could receive SEC approval imminently—possibly within the next month. This fast-tracking is largely attributed to the recent filings by companies such as REX Shares. Moreover, the use of the uncommon “C-Corp” filing format by applicants has contributed to a more expedited SEC response timeline.
Several major asset managers and financial firms are vigorously competing in this space, including Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale. Grayscale in particular aims to convert its existing Solana Trust into an ETF, following its precedent with spot Bitcoin and Ethereum funds. Despite some delays in earlier submissions, the increased activity and concurrent filings have prompted certain issuers like VanEck, Canary, and 21Shares to petition the SEC to reinstate the first-to-file approval priority. They argue that simultaneous approvals could undermine the advantages traditionally granted to early filers, which compensate for higher upfront legal and compliance costs.
Overall, the SEC's recent actions signal a proactive stance towards integrating Solana and other major cryptocurrencies into regulated ETF products, potentially opening new avenues for investors seeking exposure to these digital assets with the convenience and regulatory oversight of ETFs. As this development unfolds, market participants and observers alike should watch closely to understand how staking features will be embedded and what impact approvals may have on the broader crypto investment landscape.