SEC Speeds Up Solana ETF Review Process, Decision Possible in Five Weeks

The US Securities and Exchange Commission (SEC) has reportedly expedited the review process for Solana exchange-traded funds (ETFs), with potential approvals arriving within five weeks. According to sources familiar with the discussions, the SEC has asked ETF sponsors to file amended S-1 Forms within a week. The regulator has indicated that it intends to respond within 30 days of receiving these filings. Additionally, the SEC has directed applicants to clarify procedures for in-kind redemptions and describe how funds might participate in Solana staking. Two sources noted that regulators seemed open to allowing limited staking within the product structure. If the revised filings are received this week, a decision could be made in three to five weeks.

This development comes as analysts had previously predicted that the approval of altcoin-related funds might not happen before October, when most of the final deadlines for an SEC decision expire. However, the recent filing of REX Shares to list Ethereum and Solana ETFs with staking offerings has led the regulator to consider fast-tracking the approvals. The filings used the rare “C-Corp” format, which has a shorter response deadline with the regulator.

Several major financial institutions have applications for a Solana ETF, including Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale. Grayscale seeks to convert its existing Solana Trust into an ETF, mirroring the path it used to list spot Bitcoin and Ethereum funds. The firm’s application was delayed on May 13, while Franklin Templeton’s proposal was delayed on April 30. Meanwhile, filings submitted by Fidelity and VanEck were postponed on May 19. On June 6, VanEck, Canary, and 21Shares sent a letter to the SEC asking for the reinstatement of the first-to-file approval order, claiming that concurrent approvals strip early filers of the advantage that traditionally offsets higher legal and compliance costs. In the letter, they mentioned Solana ETFs.