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 June 13. This move suggests that the approval of spot SOL-based funds may be imminent. The proposed ETFs aim to provide U.S. investors with direct exposure to the price of Solana without the need to hold the altcoin directly.

The updated filings clarify language that would enable 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. This signals that the agency is more likely than before to approve some of these products, with a potential timeline of two to four months for spot SOL ETFs to begin trading.

The SEC has also reportedly indicated its openness to staking within the ETF structure. This move comes after the SEC greenlighted spot Bitcoin and Ethereum ETFs as well as hybrid Bitcoin-Ethereum funds. However, the agency has been hesitant to approve products that track other altcoins beyond ETH, despite numerous filings for funds tracking Avalanche, Dogecoin, XRP, and Official Trump. The agency recently postponed making decisions on several of those investment vehicles and asked for public comment.

Some analysts believe Solana has a better chance at securing regulatory approval under the more lenient SEC leadership, 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. Solana currently ranks sixth on the crypto leaderboard, with a market cap of $77.4 billion. SOL is trading at around $146.74 at the time of publication, up slightly over the last 24 hours.

Invesco and Galaxy Digital, two prominent firms in the financial sector, have taken significant steps towards launching a Solana ETF in the U.S. market. They registered a trust named Invesco Galaxy Solana ETF with Delaware’s Division of Corporations on June 12. This registration is a common precursor to seeking SEC approval for a crypto ETF, as it provides a legal framework and signals intent to both regulators and investors. The next anticipated step for Invesco and Galaxy Digital is to file an S-1 registration statement with the SEC, which would formally initiate the regulatory review process required to list the product on a national securities exchange.

The momentum around a potential Solana ETF approval has been building, with prediction market data indicating a high probability of approval in 2025. Reports suggest that the SEC may greenlight the first Solana ETFs as early as July. The SEC has requested that prospective issuers update their S-1 filings within one week, indicating active dialogue between the regulator and market participants. Discussions have also reportedly included the possibility of permitting limited staking functionality within approved ETFs.

If approved, a Solana ETF would allow investors to gain exposure to Solana’s price performance through a regulated vehicle, without the need for direct custody or purchase of the digital asset. However, the level of investor demand remains uncertain. Analysts note that while the product will likely attract some inflows, they are unlikely to match the scale of demand seen with Bitcoin ETFs. This is due to the perception that the further away an ETF is from Bitcoin, the less assets it will attract.

The updated S-1 filings by the seven applicants mark a significant development in the journey towards a Solana ETF approval. The inclusion of staking language in these filings suggests that issuers are exploring ways to enhance the attractiveness of their products to potential investors. The SEC’s request for updated filings and the ongoing discussions about staking functionality indicate that the regulator is actively engaging with market participants to address key issues related to the approval process.