SEC Requests Amendments From Solana ETF Issuers, Approval Uncertain

The Securities and Exchange Commission has reportedly requested that prospective Solana ETF issuers submit amended S-1 forms, raising questions about the potential approval of a Solana ETF this year. The approval of a Solana ETF could have significant implications for the entire crypto market, as it took over a decade for U.S. investors to gain access to a Bitcoin ETF. This process included legal battles, extensive educational initiatives, and numerous meetings with regulators, ultimately leading to one of the largest ETF launches in history.

Ethereum ETFs were approved shortly after, but without staking capabilities. The SEC approved the listing of spot Ethereum ETFs in May 2024. Now, the market is on the brink of a potential Solana ETF approval, which could be crucial for the long-term acceptance and adoption of digital assets in the U.S.

Solana's story differs from Bitcoin's, which was primarily seen as digital gold. Solana is a blockchain used for various applications beyond savings, thanks to its speed and efficiency. According to blockchain data published via Dune Analytics, there were approximately 5.5 million Solana wallet accounts with daily activity in May 2025. Investing in Solana is akin to investing in a technology company, with numerous quantitative and qualitative data points indicating its utilization.

The Solana network handles an average of around 93 million transactions per day, totaling approximately 2.8 billion in April 2025, according to data compiled by the crypto exchange Gate. Many of these transactions are processed by companies like the crypto exchange Gemini or the infrastructure and investment firm Sol Strategies, which earn revenue from staking assets and validating the chain. The average daily gas (fee) revenue in April 2025 yielded around $1.2 million, with Gate data estimating the total monthly fee revenue reached roughly $37.5 million.

Solana users engage in a mix of DeFi activity, NFTs, and increasingly, real-world assets being brought on-chain. Major institutions such as Moody's, Societe Generale, R3, Securitize, Franklin Templeton, and BlackRock are building and releasing products on Solana. This widespread adoption and utilization make the timing right for a Solana ETF.

However, the case for a Solana ETF is more complex due to its high staking reward of over 8%, compared to Ethereum's around 2%. When Ethereum ETFs were approved, the SEC required issuers to strip out staking. Given Solana's high staking return, it is crucial that the SEC not only approve a Solana spot ETF but also allow for an ETF that stakes, ensuring fairness to investors.

Another consideration is that Solana requires Solana in a proof-of-stake system to run the network. If a significant portion of Solana tokens were locked up in ETFs and could not be staked, it could cause network issues as more tokens became unavailable. The SEC recently released guidance on staking, which appears to support native staking, the best and safest way for an ETF to stake. This, along with a request for comment on S1 filings, indicates that approval may be imminent.

Approval of a Solana ETF would provide a new way for investors to access Solana, supporting the network and allowing them to participate in its likely future growth. This development could further solidify the role of digital assets in the U.S. financial landscape, fostering innovation and adoption.