Seven ETF Providers Submit Amended Filings For Solana ETFs

Seven ETF providers, including 21Shares, Bitwise, Fidelity, Franklin Templeton, Grayscale, VanEck, and Canary Capital, submitted amended S-1 forms for Solana exchange-traded funds with the U.S. Securities and Exchange Commission on Friday. This move suggests that the approval of spot SOL-based funds may be imminent. The proposed ETFs aim to offer U.S. investors direct exposure to the price of Solana without the need to hold the altcoin directly.

The updated filings include language that enables the issuers to stake their held SOL. Staking allows issuers to generate yield on the Solana held in their funds, potentially delivering higher returns to investors. This development follows a report from Blockworks, which cited sources indicating that the SEC had instructed prospective Solana ETF issuers to update their S-1 filings. According to a senior ETF analyst, this signals a higher likelihood of the agency approving some of these products, with a potential timeline of two to four months for spot SOL ETFs to begin trading.

The SEC has reportedly shown openness to including staking within the ETF structure. This move comes after the SEC has already approved spot Bitcoin and Ethereum ETFs, as well as hybrid Bitcoin-Ethereum funds. However, the agency has been cautious about approving products that track other altcoins beyond ETH, despite numerous filings for funds tracking Avalanche, Dogecoin, XRP, and Official Trump. The agency recently postponed decisions on several of these investment vehicles and requested public comment.

Some analysts believe that Solana has a better chance of securing regulatory approval under the leadership of Paul Atkins, especially following the CME’s listing of SOL futures. This listing, while not a necessary step in the ETF listing process, is generally considered beneficial.

The updated S-1 filings submitted by Invesco and Galaxy Digital, among other applicants, include language related to staking, a process that allows token holders to participate in the network's consensus mechanism and earn rewards. This development is significant as it indicates that the applicants are prepared to offer staking services to investors, providing them with an additional source of income. The approval of spot Solana ETFs would mark a significant milestone for the cryptocurrency industry, offering investors a regulated and accessible way to gain exposure to the Solana blockchain.

The approval of spot Solana ETFs would also help shift Solana's identity from a "meme chain" to a high-performance financial blockchain, supporting trading, lending, and large-scale applications. This would further solidify Solana's position as a leading blockchain platform for decentralized finance (DeFi) and other use cases. The approval of spot Solana ETFs would also provide a boost to the broader cryptocurrency market, increasing the accessibility and liquidity of SOL and other cryptocurrencies.