Solana News Today: Regulators Fast-Track Crypto ETFs as Altcoins Enter the Mainstream

The U.S. Securities and Exchange Commission (SEC) is gradually opening the door for spot cryptocurrency trading on exchanges, with over 75 applications for cryptocurrency exchange-traded funds (ETFs) currently under review. This marks a significant shift in regulatory posture following the SEC’s approval of spot Bitcoin and Ethereum ETFs in early 2024. The agency has issued updated guidance, including standardized disclosure templates, which may reduce the average approval time for spot ETFs from 240 to approximately 75 days. These changes aim to streamline the approval process, increase transparency, and level the playing field for asset managers, according to industry participants.

Among the most prominent applications is the REX-Osprey SSK Solana ETF, which became the first U.S. Solana-based fund on July 2, 2025. Within 12 trading days, the fund exceeded $100 million in assets under management (AUM), demonstrating strong investor appetite for altcoin exposure. The SEC has requested amended S-1 filings for several Solana ETFs by July 31, signaling a possible accelerated path to approval. Bitwise’s BITW Crypto Index Fund also received initial approval on July 22 but has been temporarily stayed by the SEC pending further review.

The regulatory focus has expanded beyond Bitcoin to include major altcoins like Solana (SOL), XRP, Dogecoin (DOGE), and Cardano (ADA). The agency is reviewing applications from multiple issuers, including VanEck, 21Shares, Bitwise, and Grayscale, with final decisions anticipated between October 2025 and early 2026. The inclusion of altcoins in the ETF landscape reflects growing institutional interest in diversifying crypto portfolios and accessing emerging blockchain ecosystems. Notably, Canada has already approved Solana ETFs, with 3iQ’s Solana Staking ETF amassing C$90 million in AUM within two days of launch in April 2025.

Custody and staking mechanisms remain central to the SEC’s evaluation. The agency has emphasized the need for robust fraud-mitigation strategies and secure custody solutions, particularly for staked tokens. This scrutiny is evident in the delayed approvals of several leveraged and inverse ETFs, which operate under the 1940 Act and require a different regulatory approach. While spot ETFs aim to hold actual tokens, leveraged products are often structured as derivatives and face a more complex approval path. The SEC has also been accused of favoritism in its approval timeline, with firms like VanEck, 21Shares, and Canary Capital publicly calling for a return to a "first-to-file, first-to-approve" system.

Industry participants remain optimistic about the future of crypto ETFs, with several firms exploring innovative structures such as staked token ETFs and memecoin-based products. For example, Canary Capital has filed for a staked TRX (Tron) ETF and an NFT-themed PENGU ETF, potentially marking the first integration of Web3 assets into the U.S. financial system. These developments underscore the SEC’s evolving approach to crypto regulation and highlight the growing acceptance of digital assets as legitimate investment vehicles. As the regulatory environment matures, the outcome of these pending applications could shape the next phase of institutional adoption and market expansion.

Source: [1] Crypto ETFs Watchlist: Key Filings, Players & Status Updates (https://www.ccn.com/education/crypto/crypto-etf-watchlist-filings-players-updates/)