Solana ETF Approval Delayed as SEC Demands Revised Filings by Late July

The U.S. Securities and Exchange Commission (SEC) has mandated that asset managers seeking to list a Solana exchange-traded fund (ETF) must refile revised S-1 documents within the next three weeks. This directive comes as part of the SEC's ongoing regulatory review, which aims to ensure that all necessary information is thoroughly detailed in the filings. The SEC has specifically requested that the revised applications include comprehensive data on staking and redemption processes, setting a new deadline for late July.

The delay in the Solana ETF approval process is a result of the SEC's demand for more detailed and accurate filings. This move underscores the regulatory body's commitment to maintaining transparency and fairness in the financial markets. The SEC's request for revised filings includes critical elements such as staking mechanisms and redemption procedures, which are essential for the proper functioning of an ETF. By setting a deadline for late July, the SEC is accelerating the approval process while ensuring that all regulatory requirements are met.

On June 13, leading firms like Fidelity, Grayscale, Franklin Templeton, Bitwise, VanEck, Canary Capital, and 21Shares either filed or updated their applications for ETFs. A new addition in all filings is staking. This feature allows the funds to earn extra rewards from the blockchain. For example, Bitwise and Canary noted that their cryptocurrencies would be held in trust accounts and staked through Coinbase Custody. The rewards, paid in SOL or cash, would go back to the fund, helping increase its value.

The SEC's actions are part of a broader effort to enhance market competition and diversity. The regulatory body has been pushing for swift refiling of Solana spot ETF applications, which have been submitted by various asset managers including Canary, Grayscale, Franklin, Invesco, Fidelity, VanEck, Bitwise, 21Shares, and CoinShares. The key deadline for these applications is October 10, 2025, indicating a long-term commitment to the approval process.

Even with the updated filings, experts say more waiting is likely. The SEC has not yet created a clear rulebook for digital asset ETFs. Until that happens, the Solana ETF delayed further, not because of a rejection, but because of missing guidelines. Some believe the SEC’s request for revisions shows it’s seriously considering approval. So, while Solana ETF delayed, it could also be one step closer to being approved.

On July 2, the SEC quietly approved the REX-Osprey SOL Staking Exchange Traded Fund (SSK), a first-of-its-kind fund in the U.S. It offers both SOL price exposure and staking rewards, with an estimated annual yield of 7.3%. The approval came as a surprise, especially since many expected the it can be delayed again. After the launch, SOL’s price jumped 6% to 12%, reaching around $160, showing strong investor interest.

Unlike regular ETFs that only track price, staking Exchange Traded Funds allow the fund to earn rewards by participating in the network. These rewards help grow the fund's value or can be shared with investors. The REX-Osprey Exchange Traded Fund may pave the way for more funds with similar features, especially for other proof-of-stake coins like Ethereum and Cardano.

Even though the Solana ETF delayed, interest in these products is growing. If more funds are approved, large investors could start buying and staking more SOL, which may push up its price over time. As firms respond to the SEC’s requests, the delay might be frustrating, but it also signals that approval could be on the horizon.