Fidelity's Physical Solana ETF Approval Delayed by SEC

The SEC has delayed approval of Fidelity's Physical Solana ETF, a move that postpones the launch of the fund. The ETF aims to track the price performance of the Solana cryptocurrency. The SEC's decision is not yet finalized and may be subject to change. The delay highlights ongoing regulatory scrutiny of the cryptocurrency industry.

The U.S. Securities and Exchange Commission (SEC) has delayed the approval of Fidelity's Physical Solana ETF, a move that postpones the launch of the fund. The ETF, which aims to track the price performance of the Solana cryptocurrency, is now expected to face further regulatory scrutiny before it can be launched.

Fidelity officially filed its S-1 registration statement with the SEC on June 13, joining a list of other hopefuls seeking approval for spot-based Solana ETFs. The delay, while expected, underscores the ongoing regulatory challenges faced by the cryptocurrency industry. According to Bloomberg, the most recent delay was anticipated, and the SEC is working on new guidance to streamline the approval process for new ETF products [1].

The delay comes as the SEC has asked asset managers eyeing regulatory approval for spot Solana ETFs to file revised Forms S-1 before the end of July. This request, reported by crypto publication CoinDesk, suggests the regulator is looking to expedite the approval process for these funds [2]. The key deadline for the agency to reject or approve crypto ETFs, including those linked to Litecoin, XRP, Dogecoin, and Cardano, is in October. For Solana spot ETFs, the final deadline is October 10, 2025 [2].

Despite the delay, the launch of Solana's groundbreaking $SSK staking ETF has shown impressive trading volume, marking a significant innovation in U.S. crypto investment products. The $SSK ETF achieved $33 million in trading volume on its debut day, outperforming Solana and XRP futures ETFs and signaling robust investor interest [3]. This innovative ETF structure allows investors to benefit from Solana's native token appreciation alongside staking yields, providing a dual revenue stream that traditional ETFs lack.

The delay in Fidelity's Physical Solana ETF approval highlights the SEC's cautious approach to cryptocurrency products. The regulator has paused Grayscale's ETF conversion plan, reflecting ongoing regulatory caution around multi-asset crypto funds [3]. This pause underscores the complexity of approving diversified crypto ETFs, which may present heightened risks compared to single-asset products.

Institutional interest in staking-enabled crypto products is evident, as the Solana staking ETF drew $12 million in inflows and $33 million in volume on its debut day [4]. The launch of the REX-Osprey Solana Staking ETF, which bypassed the SEC via a non-U.S. ETP structure, created a new regulatory path for staking-enabled ETFs in the United States.

The SEC's regulatory pause on Grayscale's multi-asset ETF conversion signals caution, emphasizing the need for robust oversight as the market innovates. Investors and industry stakeholders should monitor these developments closely to navigate the evolving crypto ETF landscape effectively.

References:
[1] https://u.today/breaking-fidelitys-solana-etf-delayed-by-sec
[2] https://crypto.news/sec-asks-for-swift-refiling-of-solana-spot-etf-applications/
[3] https://en.coinotag.com/solanas-ssk-staking-etf-shows-strong-launch-amid-bitcoin-etf-inflows-and-sec-review-of-grayscale-plan/
[4] https://www.tronweekly.com/solana-staking-etf-launch-draws-12-million/