SEC Delays Fidelity Solana ETF Decision Amid Regulatory Scrutiny

The United States Securities and Exchange Commission has delayed its decision on Fidelity’s Solana ETF filing. The delay was confirmed on July 7, 2025, following a proposed rule change submitted by Cboe BZX Exchange. The filing seeks approval to list and trade the Fidelity Solana Fund on the exchange. The SEC has formally begun reviewing the proposal and is inviting public comments for 21 days. Rebuttals will be accepted within 35 days from the date of publication in the Federal Register. This step is part of the agency’s ongoing process to assess the structure and compliance of crypto-based exchange-traded products.

Market analysts had anticipated the SEC’s move. The decision was not surprising, as it underlines the absence of a complete regulatory framework for spot crypto ETFs tied to altcoins such as Solana. The delay follows the SEC’s recent release of formal guidance for crypto ETFs. This document outlines new standards that asset managers must follow. These include presenting clear disclosures about risks, custody methods, and specific features of crypto-based funds. The SEC has directed issuers to use plain English in all disclosures to help both investors and regulators understand the products better.

Besides current guidance, the SEC is working on a second document that could reduce approval timelines for future ETF filings. If implemented, it could shorten the review period from over 200 days to about 75 days. However, the Fidelity Solana ETF remains under review with no set timeline for approval. As the review continues, other financial firms are exploring different strategies. REX Financial and Osprey Funds recently launched a new product named the REX-Osprey Sol + Staking ETF. This fund offers indirect exposure to the Solana network and its staking rewards but is not a direct Solana ETF.

The delay in Fidelity's Solana ETF approval is significant for several reasons. Firstly, it underscores the regulatory challenges faced by cryptocurrency-related financial products. The SEC's cautious approach reflects its commitment to ensuring that these products meet stringent standards for investor protection and market integrity. Secondly, the delay highlights the growing interest in cryptocurrency ETFs among investors. Despite the regulatory hurdles, there is a strong demand for these products, which offer a convenient and regulated way to gain exposure to digital assets.

The public comment period provides an opportunity for stakeholders to voice their opinions on the proposed ETF. This process is crucial for the SEC, as it allows the agency to gather a wide range of perspectives and ensure that its decision is well-informed. The comments received during this period will be carefully reviewed by the SEC, which will consider them in its final decision-making process.

The delay in Fidelity's Solana ETF approval is also a reminder of the evolving regulatory landscape for cryptocurrencies. As digital assets continue to gain mainstream acceptance, regulators are grappling with how to balance innovation with investor protection. The SEC's approach to cryptocurrency ETFs reflects this delicate balance, as the agency seeks to foster innovation while ensuring that these products are safe and reliable for investors.