Solana News Today: Seven major firms file revised Solana spot ETF applications with SEC

Seven major asset management firms, including Franklin Templeton, Grayscale, VanEck, and Fidelity, submitted revised applications for Solana (SOL) spot ETFs to the U.S. Securities and Exchange Commission (SEC) on August 1, 2024, incorporating updated staking provisions and custodial structures [1]. These amendments reflect a strategic alignment with the regulatory frameworks seen in recent approvals of Bitcoin and Ethereum ETFs, including the use of in-kind redemption mechanisms and dual custody arrangements [2]. The filings signal a growing institutional push to bring regulated access to Solana, a high-speed blockchain with transaction costs far lower than those of Ethereum and Bitcoin.

Grayscale’s proposed Solana ETF includes a 2.5% annual fee, while VanEck’s application features active staking rewards and a dual custodianship model. These details highlight the diversity of approaches among asset managers in structuring crypto ETFs [3]. Analysts suggest the coordinated timing of the filings indicates ongoing dialogue between firms and SEC officials, with the updated applications addressing long-standing regulatory concerns about custody and operational clarity [4].

The potential approval of these ETFs is expected to bring significant institutional capital into the Solana ecosystem. With over $60 billion in staked SOL tokens, the network already demonstrates substantial institutional participation [5]. If approved, the ETFs could attract initial inflows of up to $2.9 billion, with estimates projecting growth to $5.5 billion within the first year [6]. Such a move would position Solana alongside Bitcoin and Ethereum as a mainstream investment vehicle for pension funds, endowments, and other institutional investors, many of whom are currently restricted from directly purchasing crypto assets.

Despite the positive institutional momentum, Solana’s price dropped more than 3% to $170.24 following the ETF filing announcements, suggesting that much of the market’s optimism may have already been priced in [1]. Technical indicators currently show bearish momentum, with key support levels at $170 and $158 under close observation by traders [3]. A sustained move above $180 could reinvigorate bullish sentiment. The broader market remains cautious, with both institutional and retail investors adopting more defensive positions amid wider crypto volatility.

Institutional confidence in Solana is also bolstered by recent upgrades to the blockchain’s infrastructure. The introduction of the Firedancer validator client, developed by Jump Crypto, is expected to significantly enhance the network’s performance, with the capability to process over one million transactions per second [7]. Additionally, Solana’s expanding ecosystem—spanning decentralized finance (DeFi), NFTs, and real-world asset tokenization—has driven demand for the SOL token, with total value locked in DeFi now exceeding $10.3 billion [8].

Corporate adoption is another key driver of Solana’s growth, with major financial institutions like HSBC and Bank of America exploring asset tokenization on the network [6]. These developments underscore the increasing integration of blockchain technology into traditional finance and highlight Solana’s potential to serve as a foundational layer for future financial systems.

The SEC is expected to make a final decision on the proposed Solana ETFs by October 2025, with analysts estimating an over 90% probability of approval [5]. If granted, the ETFs would not only provide investors with a regulated pathway to exposure but also signal broader recognition of Solana’s technological and financial maturity. Given the strong institutional interest, the regulatory environment appears increasingly favorable, with the path toward a Solana ETF looking clearer by the day.

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Source:

[1] https://crypto-economy.com/ethereum-etfs-see-longest-inflow-streak-ever-17m-more-in-a-single-day/

[2] https://coinpedia.org/crypto-live-news/

[3] https://blockster.com/member/lidia-yadlos

[4] https://www.mexc.com/zh-MY/news/sec-sets-new-crypto-etf-standards-dozen-major-tokens-could-qualify-by-october/63108

[5] https://blockchain.news/Profile/Rebeca-Moen

[6] https://eng.ambcrypto.com/will-solanas-sol-price-hit-2000/

[7] https://www.facebook.com/photo.php?fbid=733867349526476&set=a.130****63246274&type=3

[8] https://nequi.org/