SEC Sets July Deadline for Solana ETF Applications, Approval Expected Soon

The Securities and Exchange Commission (SEC) has set a July deadline for issuers to amend and refile applications for spot Solana exchange-traded funds (ETFs). This move suggests that the approval process for these funds may be expedited, potentially leading to approvals before the final deadline of October 10. The SEC's decision comes in the wake of the automatic approval of the REX-Osprey SOL and Staking ETF, which began trading last week under different regulatory rules.

This development follows the SEC's request in June for issuers to amend their S-1 filings to include language for in-kind redemption and creations as well as staking. The SEC's actions indicate a desire to accelerate the approval process for spot Solana ETFs, which would join bitcoin and ether as the only approved spot crypto funds in the U.S. Other outstanding applications include funds tracking the price of XRP, Dogecoin, and Litecoin, among others.

The recent approval of the REX-Osprey SOL and Staking ETF (SSK) has added pressure on the SEC to expedite the approval process for spot Solana ETFs. SSK, which started trading last week, is the first Solana staking fund on the market, giving it a first-mover advantage. The SEC has previously attempted to prevent such advantages by approving several spot ether and bitcoin ETFs simultaneously.

According to sources familiar with the matter, the SEC is under pressure to approve these funds quicker than waiting until October. The automatic approval of SSK, which falls under the Investment Company Act of 1940, has likely influenced the SEC's decision to expedite the approval process for spot Solana ETFs. The SEC's actions suggest a willingness to approve one or more of the funds well ahead of the October 10 deadline.