Solana (SOL) experienced a significant price jump of 5% on Tuesday evening, reaching above $164 following reports that the U.S. Securities and Exchange Commission (SEC) is moving forward with the regulatory process for spot Solana ETFs.
According to a report from Blockworks, the SEC has requested prospective ETF issuers to amend their S-1 filings within the next week. The regulator is expected to provide comments on these submissions within 30 days after they are filed, signaling progress toward potential approval.
The Regulatory Path Forward
The SEC’s request for amended paperwork represents a significant step in the approval process for Solana-based investment products. This development follows the successful launches of Bitcoin and Ethereum spot ETFs in the United States last year, which opened the door for traditional investors to gain exposure to digital assets through regulated vehicles.
Several major asset managers have already filed applications to launch Solana ETFs, including:
- Fidelity
- Grayscale
- Franklin Templeton
- VanEck
These firms are positioning themselves to capitalize on growing investor interest in Solana, which has established itself as one of the leading blockchain platforms with a strong ecosystem of decentralized applications.
Market Context and Outlook
The timing of this development is particularly notable as it comes amid growing optimism about Solana ETF approval chances. Recent data from prediction markets shows confidence levels for a Solana ETF approval have climbed significantly, with Polymarket showing approval odds at 83% as of June 1 1.
The SEC has been reviewing several Solana-related ETF proposals, including:
1. NYSE Arca’s rule change submission for the Bitwise 10 Crypto Index Fund, which includes Solana alongside Bitcoin and Ethereum 1
2. REX Shares and Osprey Funds’ “staking ETF” proposal that would allocate capital to Solana and Ethereum 1
While the SEC recently delayed its decision on the Bitwise proposal until July 31, market sentiment remains positive, interpreting the delay as part of the normal regulatory process rather than a signal of rejection 1.
What This Means for Investors
If approved, Solana ETFs would provide traditional investors with a regulated and familiar investment vehicle to gain exposure to SOL without directly purchasing and storing the cryptocurrency. This could potentially bring significant new capital into the Solana ecosystem.
The SEC’s apparent progress on Solana ETFs follows the successful pattern established with Bitcoin and Ethereum ETFs, suggesting regulators may be warming to expanding the range of cryptocurrency investment products available to mainstream investors.
Market analysts will be closely watching the SEC’s comments on the amended filings in the coming weeks, as they could provide further insights into the likelihood and timeline for potential approval.
