Seven Firms File for Spot Solana ETFs, Including Staking

On June 13, seven firms, including Fidelity, Grayscale, VanEck, and Franklin Templeton, filed new or updated S-1 statements with the U.S. Securities and Exchange Commission (SEC) for a spot Solana ETF. This move marks a significant acceleration in the race to launch such a financial product. Notably, every filing mentioned staking, a feature that allows investors to earn rewards by participating in the network's consensus mechanism.

Fidelity submitted its first-ever S-1 for a Solana ETP, while updates came from 21Shares, Bitwise, Galaxy Digital, Canary Capital, and Grayscale, which disclosed a 2.5% management fee. VanEck, which initially filed for a spot Solana ETF in June 2024, also amended its proposal to include staking. This collective effort underscores the growing interest and optimism surrounding Solana's potential as an investment vehicle.

Despite the surge in filings, ETF analysts caution that the process will not be instantaneous. Drawing parallels with the spot Bitcoin ETF timeline, it is expected that the SEC will engage in several rounds of discussions with issuers to address details and complexities, particularly those introduced by staking. According to an analyst, the SEC's engagement with issuers, such as requesting updates to S-1 filings, is a positive sign that the applications are being actively reviewed.

While the timeline for approval remains uncertain, there are encouraging indicators. The listing of Solana futures on the CME, although not a formal requirement, is often viewed favorably in ETF approval decisions. This, coupled with Solana's growing ecosystem and deeper institutional interest, positions it strongly among altcoins. The SEC has only approved spot ETFs for Bitcoin and Ethereum so far, with several other altcoin proposals still pending. Solana's prospects appear more promising given its trading volume and institutional backing.