SEC Recognizes Revised Solana ETF Application

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged Grayscale's revised application for a spot Solana exchange-traded fund (ETF), marking a significant development for the cryptocurrency. The SEC's official recognition of the amended application on Feb. 6 is notable, as previous attempts to file SOL ETFs were rejected under the leadership of SEC Chair Gary Gensler.

Finance lawyer Scott Johnsson highlighted on X that the regulator's previous refusals were based on Solana products being incorrectly categorized as commodity trust shares. Bloomberg analyst James Seyffarte also echoed this sentiment in January, stating that the SEC's Division of Enforcement classifying Solana as a security makes it difficult for other SEC divisions to consider it under a commodities ETF framework.

The timeline for a potential Solana ETF remains uncertain, with experts offering differing opinions. In November, ETF Store President Nate Geraci told The Block that approval could come by the end of next year, noting that the SEC's recent engagement with issuers is a promising development. However, Seyffart suggested that the approval process could stretch into 2026, pointing out that the SEC typically takes 240 to 260 days to review such filings.

This development comes as a wave of crypto ETF filings has landed on the SEC's desk in recent weeks. Major issuers, including 21Shares, Bitwise, VanEck, and Canary Capital, are all vying to list spot Solana ETFs, with Cboe BZX Exchange refiling 19b-4 forms on their behalf on Jan. 28.

Beyond Solana, the SEC has acknowledged several other crypto ETF-related applications. These include Grayscale's filing for a Litecoin (LTC) ETF, as well as BlackRock's proposal to allow in-kind creations and redemptions for its iShares Bitcoin ETF. Additionally, Cboe BZX filed forms for Canary Capital, 21Shares, and Bitwise to list a spot Ripple (XRP) ETF. Lastly, Bitwise has proposed a spot Dogecoin (DOGE) ETF, adding to the growing list of crypto investment products seeking regulatory approval.