SEC Orders Revised Filings for Solana Spot ETFs by July End

The U.S. Securities and Exchange Commission (SEC) has directed asset managers to submit revised Forms S-1 for spot Solana (SOL) exchange-traded funds (ETFs) by the end of July. This directive underscores the SEC’s intensified focus on critical aspects such as staking mechanisms and in-kind redemptions, which are pivotal for the approval process of crypto ETFs. Industry experts view this move as a positive sign, indicating the SEC’s increasing engagement with crypto ETF issuers and potentially paving the way for approvals in 2025.

The SEC’s request for revised filings reflects a strategic shift toward expediting the review process. By insisting on detailed disclosures around staking protocols and in-kind redemption processes, the SEC aims to mitigate risks associated with these innovative financial products. The firm deadline set at the end of July emphasizes the agency’s commitment to thorough yet timely evaluation, which could influence the broader crypto ETF landscape.

For issuers such as Canary, Grayscale, Franklin Templeton, Invesco, Fidelity, VanEck, Bitwise, 21Shares, and CoinShares, the SEC’s request introduces both a challenge and an opportunity. The need to incorporate comprehensive details on staking and redemption mechanisms requires meticulous compliance efforts but also signals the regulator’s openness to advancing crypto ETF approvals. Industry analysts have projected a greater than 95% probability of Solana spot ETF approval by 2025, reinforcing market optimism despite the official October 10, 2025 deadline for final decisions.

The SEC’s accelerated approach is not unprecedented; it previously fast-tracked spot Ethereum ETFs in 2024, setting a regulatory precedent. Notably, the recent approval of the REX-Osprey SOL and Staking ETF—the first U.S. staking ETF—demonstrates the agency’s growing acceptance of innovative crypto investment vehicles. The ETF’s debut volume of approximately $33 million and inflows of $12 million highlight strong investor interest. Furthermore, Bitwise’s amended S-1 filings for Dogecoin and Aptos ETFs in late June have been interpreted by experts as a sign of productive dialogue with the SEC, suggesting a more engaged regulatory environment.

The SEC’s actions must be viewed within the broader context of ongoing regulatory scrutiny over crypto assets. While the agency has delayed decisions on ETFs linked to Litecoin, XRP, Dogecoin, and Cardano, the focused push on Solana spot ETFs indicates a nuanced approach balancing investor protection with market innovation. The regulatory emphasis on detailed disclosures aims to ensure transparency and reduce systemic risks, which is critical as crypto ETFs gain traction among institutional and retail investors alike.

The SEC’s request for revised S-1 filings for Solana spot ETFs by July’s end marks a pivotal moment in the maturation of crypto exchange-traded products. This development not only signals potential acceleration toward approval but also reflects the regulator’s commitment to robust oversight, particularly concerning staking and redemption processes. Market participants should monitor these filings closely, as they may set important precedents for future crypto ETF approvals and broader institutional adoption of digital assets.