SEC's Solana ETF Green Light Could Drive Institutional Inflows

Multiple asset managers have submitted revised applications for Solana staking ETFs to the U.S. Securities and Exchange Commission (SEC), with analyst forecasts suggesting regulatory approval could arrive within two weeks. Major firms including Grayscale, Fidelity, Bitwise, VanEck, and Canary Capital filed amended S-1 forms, incorporating staking features that allow funds to generate yield via Solana’s proof-of-stake mechanism. ETF analyst Nate Geraci of NovaDius Wealth Management predicted approval by mid-October, citing streamlined SEC processes and coordinated filings from issuerstitle1^[1]. These staking provisions enable ETFs to earn rewards in cash or SOL tokens, enhancing net asset value and shareholder returnstitle2^[2].

The regulatory environment has shifted in favor of crypto ETFs, with the SEC recently approving Grayscale’s Ethereum products under standardized listing frameworks. This move reduces repetitive case-by-case reviews, accelerating approvals for similar applicationstitle3^[3]. Geraci noted that Solana’s staking model could set a precedent for Ethereum ETFs, as existing Ethereum staking requests have faced delaystitle4^[4]. The inclusion of staking in Solana filings signals institutional confidence, with Bitwise’s European Solana staking ETP attracting $60 million in inflows over five trading daystitle5^[5].

Growing institutional demand is evident in the performance of existing Solana ETFs. The REX-Osprey Solana Staking ETF, launched in August, reported $10.6 million in daily inflows and surpassed $250 million in assets under management within two monthstitle6^[6]. Its recent restructure to a regulated investment company eliminated federal and state taxes at the fund level, boosting efficiencytitle7^[7]. Pantera Capital analysts highlighted Solana as the “next institutional moment” after Bitcoin and Ethereum, noting that institutional holdings account for less than 1% of the total SOL supply compared to 16% for Bitcoin and 7% for Ethereumtitle8^[8].

Solana’s competitive advantages—high-speed transactions, low fees, and 7–8% staking yields—position it to capture institutional capital. Analysts argue that approval of staking ETFs could trigger a reallocation of institutional flows, reshaping the crypto market balance. The token’s current price performance, however, has been volatile, with a 16% weekly decline as of late Septembertitle9^[9]. If the SEC greenlights the ETFs, SOL could see renewed momentum, potentially reaching new all-time highs driven by yield-seeking investorstitle10^[10].

The October approvals would mark a pivotal step in Solana’s institutional adoption, bridging the gap between altcoins and market leaders like Bitcoin. With regulatory clarity and growing demand, Solana’s ecosystem could see a surge in capital inflows, solidifying its role as a key player in the next crypto cycletitle11^[11].