Solana ETFs Poised to Bridge DeFi and Traditional Markets with Staking Innovation

title1^[1] Seven major asset managers—21Shares, Bitwise, Fidelity, Franklin Templeton, Grayscale, VanEck, and Canary Capital—have submitted revised S-1 filings to the U.S. Securities and Exchange Commission (SEC) for Solana (SOL) exchange-traded funds (ETFs), incorporating staking capabilities. These amendments, filed in late August and September 2025, align with recent regulatory feedback and signal a coordinated effort to address the SEC’s concerns over staking mechanics and redemption processes. The updated filings explicitly allow the ETFs to stake their Solana holdings, enabling yield generation through participation in the blockchain’s proof-of-stake networktitle2^[2].

title3^[3] The inclusion of staking is a pivotal feature for these ETFs, as it allows the funds to earn additional returns by locking tokens to secure the Solana network. Staking rewards, which can be distributed in SOL tokens or cash, are expected to enhance the net asset value (NAV) of the ETFs, offering investors exposure to both price appreciation and yield generation. This approach mirrors the structure of Ethereum staking ETFs, though the SEC’s prior reluctance to approve staking in Ethereum products has created regulatory uncertainty. Analysts, including ETF Store president Nate Geraci, argue that the SEC’s recent approval of streamlined “generic listing standards” for crypto ETFs—reducing approval timelines from 240 to 75 days—bodes well for a favorable outcometitle5^[4].

title7^[5] Institutional demand for Solana-based products has surged, with preliminary data highlighting strong investor appetite. The REX-Osprey Solana Staking ETF, launched in July 2025, attracted $33 million in initial volume and $12 million in day-one inflowstitle8^[6]. In Europe, Bitwise’s Solana staking ETP saw $60 million in inflows over five trading days, underscoring the asset’s appeal. If approved, the proposed U.S. Solana ETFs could see rapid adoption, particularly as they differentiate themselves from Bitcoin and Ethereum ETFs by offering staking rewards. Analysts project that these ETFs could attract up to $5.5 billion in inflows within their first year, assuming favorable market conditionstitle10^[7].

title11^[8] The SEC’s regulatory approach has shifted under President Donald Trump’s administration, with the agency dropping lawsuits against major crypto firms and engaging more collaboratively with industry stakeholders. This softening stance has accelerated the filing process for crypto ETFs, with 16 Solana-related applications currently under review—more than any other altcoin. The SEC is expected to render a decision by October 10, 2025, with a 90% probability of approval, according to prediction markets and analyst forecaststitle12^[9]. If granted, the approval would set a precedent for staking-enabled ETFs across proof-of-stake blockchains, potentially paving the way for Ethereum and other altcoin ETFs to follow suittitle13^[10].

The potential approval of Solana ETFs represents a significant milestone for the crypto industry, bridging the gap between decentralized finance and traditional markets. By offering regulated, yield-generating exposure to Solana, these ETFs could attract institutional capital and further legitimize digital assets as part of mainstream portfolios. However, challenges remain, including the SEC’s unresolved classification of SOL as a security versus a commodity and the need for robust custody solutions. Despite these hurdles, the coordinated efforts of asset managers and the SEC’s evolving regulatory framework suggest that Solana ETFs could launch by late 2025, reshaping the landscape for crypto investment products.