SEC Acknowledges Solana ETF Filing—Will It Finally Get Approved?

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s updated application for a spot Solana (SOL) exchange-traded fund (ETF). This development is significant, as previous Solana ETF filings were repeatedly rejected under the leadership of SEC Chair Gary Gensler.

The filing, accepted on February 6, 2024, hints at a potential shift in how the SEC views crypto-based ETFs beyond Bitcoin and Ethereum. However, while acknowledgment is a necessary step, it does not mean approval is guaranteed. The road ahead remains uncertain, and industry leaders have differing views on how long the process could take.

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Key Takeaways

• The SEC has finally acknowledged a Solana ETF filing after rejecting past attempts, but approval is still uncertain.
• Experts disagree on when a Solana ETF might be approved, with predictions ranging from late 2025 to 2026.
• More crypto ETFs, including ones for Litecoin, XRP, and Dogecoin, are under review, showing increased interest in regulated crypto investments.

Why Solana ETF Filings Faced Rejection Before

Solana ETFs have had an extremely difficult time gaining regulatory approval in the past. Finance lawyer Scott Johnsson noted that one of the main reasons for rejection was how the SEC categorized Solana products—as commodity trust shares. This classification is what made it difficult for ETF proposals to fit within regulatory frameworks.

Another major roadblock is the SEC’s stance on Solana itself. Bloomberg analyst James Seyffart pointed out that the SEC’s Division of Enforcement has classified Solana as a security, which complicates its approval as an ETF. If the SEC views SOL as a security rather than a commodity, approving an ETF becomes much more difficult under current U.S. financial regulations.

When Could a Solana ETF Be Approved?

The timeline for a Solana ETF approval is all speculation. Some experts believe it could happen sooner than expected, while others think it might take years.

In November 2023, Nate Geraci, President of ETF Store, said he believes a Solana ETF could receive approval by the end of 2025. He pointed to the SEC’s increased activity with crypto firms as a positive sign. However, Seyffart had a more cautious view, suggesting approval could be delayed until 2026. He explained that the SEC typically takes between 240 to 260 days to review ETF applications, and given the regulatory complexities surrounding Solana, a longer review period seems likely.

Even though acknowledgment does not mean approval, it is still a positive step forward. The SEC is now actively considering the application instead of outright rejecting it, which is a small but meaningful sign of progress.

More Crypto ETFs Under Review

In recent weeks, several major financial firms have submitted applications for new crypto investment products, showing increasing demand for regulated exposure to digital assets.

Grayscale has also filed for a Litecoin (LTC) ETF, and BlackRock has proposed updates to its iShares Bitcoin ETF to allow in-kind creations and redemptions. Meanwhile, financial firms like Bitwise, 21Shares, VanEck, and Canary Capital are actively pursuing spot Solana ETFs.

Interest in ETFs for other cryptocurrencies is also growing. The Cboe BZX Exchange recently refiled 19b-4 forms for spot Ripple (XRP) ETFs on behalf of several issuers, including WisdomTree, 21Shares, and Bitwise. Bitwise has also proposed a spot Dogecoin (DOGE) ETF, highlighting the growing demand for crypto-based investment products.

These filings show that institutional investors are pushing for more crypto ETFs. However, the SEC’s slow-moving regulatory process means it could take a while before any of these products receive approval.

What This Means for the Crypto Market

The SEC’s acknowledgment of the Solana ETF filing suggests that regulators are at least willing to review new crypto investment products, even if approval is not guaranteed. This could be a sign that attitudes toward crypto ETFs are shifting, especially with growing pressure from financial institutions and investors.

If a Solana ETF is eventually approved, it could open the door for more altcoin-based ETFs, allowing investors to diversify beyond Bitcoin and Ethereum. A spot Solana ETF would make it easier for institutional and retail investors to gain exposure to Solana without having to directly buy or store the cryptocurrency.

However, regulatory uncertainty remains a key challenge. The SEC’s stance on whether Solana is a security will be a major factor in determining the outcome of this filing. If the agency continues to classify SOL as a security, approval could be much more difficult.

For now, investors and industry watchers will have to wait and see how the SEC responds in the coming months.

Final Takeaway

Solana’s growing presence in ETF discussions shows the increasing interest in expanding crypto investment options. While past rejections have slowed progress, the SEC’s acknowledgment of Grayscale’s filing is a step that gives hope to investors. However, the final decision remains uncertain, and regulatory challenges could still delay approval. With more firms filing for crypto ETFs, the coming months will set the tone for future ETFs to be approved.

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