The U.S. Securities and Exchange Commission (SEC) has reportedly instructed potential issuers of spot Solana exchange-traded funds (ETFs) to revise and resubmit their S-1 filings by mid-June, according to a Blockworks report.
As per the report, the SEC has asked issuers to provide clearer details on in-kind redemption mechanisms a key procedural aspect of ETF structures. Interestingly, sources indicate that the agency is open to allowing staking features within these products, marking a potential shift in regulatory approach to crypto-based ETFs.
Once the updated S-1 filings are submitted, the SEC is expected to respond with comments within 30 days.
High probability of Solana ETF approval in 2025
While an exact timeline for approval remains uncertain, Bloomberg’s senior ETF analyst James Seyffart projects that spot Solana ETFs are more likely to secure approval in early Q4 2025.
“Delays in spot crypto ETF approvals are anticipated,” Seyffart noted “If early green lights from the SEC are on the table, the earliest we could realistically expect would be late June or early July.”
Seyffart also estimates a 90% probability of approval for Solana and Litecoin ETFs next year. XRP follows with an 85% chance, while other altcoins such as Dogecoin and Hedera Hashgraph (HBAR) stand at around 80%.
A number of prominent asset managers have already filed S-1 forms for spot Solana ETFs. These include Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, Franklin Templeton, and Fidelity.
Seyffart suggests that the SEC’s current classification of certain altcoins—like Solana—as commodities rather than securities could positively influence the approval process. In February, the SEC formally acknowledged Grayscale’s proposal. However, by May, it had postponed its decision, citing the need for further review.
Similar delays were announced for ETF proposals from Bitwise and 21Shares, with the SEC highlighting the necessity to further examine technical, legal, and investor protection aspects.
While U.S. regulators deliberate, Brazil has taken the lead. The country’s securities authority approved the world’s first spot Solana ETF in August 2024. Shortly thereafter, a second SOL ETF was introduced by asset manager Hashdex, underscoring international momentum in support of Solana-based investment products.
