SEC Greenlights Solana ETFs: A New Era for Altcoin Investing

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards approving Solana-based exchange-traded funds (ETFs), signaling a potential shift in the regulator's stance on altcoin funds entering the U.S. market. On Tuesday, the SEC acknowledged several filings from various investment firms, including Canary Capital, VanEck, 21Shares, and Bitwise, indicating progress in the approval process for Solana ETFs.

The SEC opened public comment on Canary Capital's Solana Trust, a proposed ETF that would bring SOL investing to Wall Street. Later in the day, the regulator acknowledged similar filings from VanEck, 21Shares, and Bitwise. This development follows the SEC's solicitation of public comment on a proposal last week to list and trade the Grayscale Solana Trust, which the asset management giant wants to convert into a SOL ETF. Franklin Templeton also looks poised to enter the SOL ETF race, having filed documents in Delaware to register the Franklin Solana Trust.

Previously, the SEC had rejected investment firms' applications to list Solana ETFs. However, with a pro-crypto U.S. government under President Donald Trump, momentum seems to be gathering around potential altcoin ETFs. Notably, the new SEC has launched a dedicated crypto task force headed by Commissioner Hester Peirce. Many believe ETFs tracking Solana, Litecoin, Ripple's XRP, and Dogecoin will get the green light in 2025. Analysts tip the probability of Solana ETFs being greenlighted by the U.S. SEC at 70%.

One potential hurdle for SOL-based ETFs is the debate over whether to categorize the crypto as a commodity or security. The SEC has labeled SOL as an unregistered security in multiple suits against exchanges like Binance, Kraken, and Coinbase. However, all signs suggest the securities watchdog, under new leadership, will be more amenable than in the past. Hopes swelled after the SEC and Binance temporarily paused their ongoing legal fight to allow the crypto task force to figure out a possible resolution.