Solana News Today: SEC delays Solana ETF approvals until October 2025 triggering price drop and $70M in liquidations

The U.S. Securities and Exchange Commission has postponed its decision on two spot Solana (SOL) exchange-traded fund applications from Bitwise and 21Shares until October 16, 2025. The delay, disclosed in official filings, was attributed to the need for further review and evaluation of the proposals and broader market considerations. According to the SEC, the extended timeline is necessary to “have sufficient time to consider the proposed rule change” [1].

The decision aligns with the SEC’s historically cautious approach to approving ETFs tied to digital assets. Additional scrutiny has also been applied to other pending Solana ETF proposals from Grayscale and Fidelity, which have similarly seen their approval timelines extended. The agency has noted a recent increase in crypto ETF applications, including those for XRP and DOGE, suggesting a broader trend of institutional interest in digital asset investment vehicles [1].

Market reactions to the news were immediate. On July 24, 2025, Solana’s price dropped from approximately $210 to $190 within a 24-hour period, triggering roughly $70 million in liquidations of long positions [1]. The price decline reflected the heightened sensitivity of crypto markets to regulatory developments. Analysts have noted that the SEC’s delays on crypto ETFs are not uncommon and often lead to short-term volatility. Similar patterns have been observed in the past with Bitcoin and Ethereum ETF applications, where initial market turbulence subsided as regulatory clarity emerged [5].

The extended review period has raised concerns about the consistency and transparency of the SEC’s decision-making process. While the agency has emphasized the importance of investor protection and market integrity as justifications for the delay, some industry participants argue that the lack of clear timelines or communication can hinder innovation. A favorable decision on October 16 could indicate a more permissive regulatory stance and potentially open the door to a broader range of digital asset financial products [1].

Analysts are closely monitoring the October 16 deadline to assess whether the SEC will adopt a more accommodating approach to spot crypto ETFs. The additional time allows the agency to weigh stakeholder feedback and potential legal risks while aligning its decision with broader regulatory goals. A positive outcome for the Solana ETFs could serve as a signal of regulatory evolution and encourage further institutional participation in the crypto market [5].

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[1] title1.............................(https://www.theblock.co/post/367070/us-sec-delays-decision-on-solana-etf-proposals-from-bitwise-and-21shares-to-october)

[5] title5.............................(https://www.blockscholes.com/research)