Solana Drops 3.193% as SEC Faces Pressure for ETF Approval

Solana's latest price was $172.20, down 3.193% in the last 24 hours. Solana infrastructure provider Jito Labs, asset managers VanEck and Bitwise, alongside the Solana Policy Institute and Multicoin Capital Management, have formally appealed to the US SEC to allow liquid staking for Solana exchange-traded products (ETPs).

Liquid staking is a process where tokens are staked with a validator while receiving a derivative token that remains tradable. This method allows Solana holders to maintain liquidity and use their staked assets in decentralized finance or lending, unlike traditional staking where tokens are locked. The appeal emphasizes that liquid staking can prevent forced rebalancing in ETPs, lowering costs and minimizing tracking errors. It also highlights benefits such as enhanced network security and expanded product offerings for investors.

At least nine Solana ETPs are currently awaiting a decision from the SEC. The letter does not cover the risks of liquid staking, among them being smart contract bugs or vulnerabilities, depegging events and slashing risks. The SEC has not issued formal guidance on liquid staking, though it has said traditional staking may not constitute a securities offering if it’s directly tied to a consensus process.

Solana ETFs are set for launch, with the REX-Osprey Solana Staking ETF already operational in the U.S. as of July 2025. The imminent approval of Solana ETFs marks increased institutional participation, potentially boosting Solana's market standing and catalyzing broader adoption dynamics in cryptocurrency investments. Key players like VanEck, 21Shares, and Bitwise are actively engaged. This progress marks a major shift. The absence of SEC objections underscores the changing landscape in crypto investment vehicles.

Market conditions for Solana are favorable. Anticipated ETF approvals have already sparked interest from institutions. Investors are eyeing potential impacts on Solana's value and adoption. The financial landscape could shift significantly. The introduction of Solana ETFs may lead to inflows similar to those observed post-Bitcoin and Ethereum ETF approvals, influencing cryptocurrency legitimacy and adoption.

Regulatory adaptation for Solana ETFs signifies a change in SEC measures. This can catalyze growth in the value of digital assets and impact global market dynamics. Analysts predict that Solana's ecosystem may see increased trading volume and token utilization. Historical trends with other ETFs support this outlook. This progression may drive further technological advancements and financial innovations.

Grayscale and VanEck are making significant strides by submitting updated S-1 registration documents pertaining to their proposed Solana ETFs. This development indicates that the launch of these funds might be imminent. The newly submitted documents detail sponsor fees, operational intricacies, and custodial services. Officials have highlighted how these updates enhance transparency throughout the process.

In Grayscale’s latest S-1 application, the sponsorship fee for the Solana ETF (GSOL) is set at 2.5%. This fee was determined based on industry standards and fund management costs. Additionally, the GSOL is structured around a cash model, where investors’ contributions are assessed in cash and the fund operates accordingly. Coinbase has been selected to provide custodial services for the fund. This decision stems from their robust solutions for securely storing crypto assets, aimed at enhancing investor confidence.

Both companies submitting updated S-1 files sends a positive signal to the U.S. Securities and Exchange Commission (SEC) during its review process. The applications include comprehensive details about the structure of the funds and investors’ rights. Analysts suggest that the transparency in these documents might increase approval likelihood. While Grayscale’s fee might seem steep, the company sees its existing client base for their Solana product as an advantage to bolster revenue.

Grayscale representatives state, “For investors, cost and transparency are vital. Our data aims to meet expectations.” Similarly, VanEck has provided updated information to the public about its Solana ETF. The company’s document outlines sponsor fees, the fund’s corporate structure, and operational specifics. This aims to offer guidance to investors making decisions.

For most Solana ETFs, the final decision date is in October, but for VanEck and Grayscale, the verdict is expected next week. With these application updates, market participants and investors are closely monitoring developments. With Trump administration policies in mind, the rejection probability seems low, enhancing approval expectations. If granted, Grayscale’s crypto basket trust approval could trigger a freeze on listing as the overall framework for altcoin ETFs is not yet defined. This could mean waiting until October post-approval.

Recent updates for Solana ETFs indicate an acceleration in the process. Clarifying aspects like cost structure, operational details, and custodial services simplifies investors’ access to information. These advancements suggest a potential increase in investment product demand and the emergence of alternative market offerings. Feedback from regulatory bodies and forthcoming decisions will crucially shape the progression.

The cryptocurrency world is abuzz with exciting news: the potential arrival of a spot Solana ETF. This isn’t just a whisper; it’s a tangible step forward, as seven prominent asset managers have officially submitted revised S-1 applications for their proposed spot Solana (SOL) exchange-traded fund products to the U.S. Securities and Exchange Commission (SEC). This development marks a significant milestone, indicating growing institutional interest and a maturing landscape for digital assets beyond Bitcoin and Ethereum.

Cemtrex Inc. announced a strategic acquisition of $1 million worth of Solana, citing structural mispricing within the cryptocurrency market as the primary motivation. The company outlined its goal to build a substantial $10 million crypto treasury reserve, positioning this move as part of a broader investment strategy in the digital asset space. This institutional investment highlights a significant vote of confidence in Solana's underlying value proposition.

Institutional stakeholders are actively lobbying the US Securities and Exchange Commission (SEC) regarding Solana's regulatory status. This pressure comes amid existing bearish market sentiment surrounding the cryptocurrency, reflecting institutional engagement with the regulatory framework that will shape Solana's future operating environment.

The Solana ecosystem continues to foster development and accessibility. The Helium Network, a key decentralized physical infrastructure network (DePIN) project operating on Solana, has launched a new service called Helium Plus. This initiative simplifies participation for businesses, allowing them to contribute to network growth using only Wi-Fi connectivity. Crucially, this eliminates the previous requirement for businesses to purchase dedicated new hardware, potentially accelerating network expansion and adoption.

Mutuum Finance is also preparing for a significant 2025 initiative within the Solana ecosystem. While specific technical details regarding the project remain undisclosed, the platform anticipates substantial growth coinciding with this launch period.