Solana News Today: SEC Delays Solana ETF Decision to October 16 Amid Regulatory Scrutiny

The U.S. Securities and Exchange Commission (SEC) has exercised its final procedural extension authority, pushing the decision deadline for spot Solana (SOL) exchange-traded fund (ETF) applications to October 16, 2025 [1]. The regulatory agency announced the move on Thursday, stating it needs additional time to “consider the proposed rule changes and the issues raised.” This delay affects multiple applications from major asset management firms, including Bitwise, 21Shares, Canary Capital, and Marinade Finance. The extension is consistent with the SEC’s established pattern of cautious review for cryptocurrency-linked investment products, mirroring past delays for Bitcoin and Ethereum ETFs before their eventual approvals [1].

The SEC’s filing on Thursday applied uniform language to the Bitwise and 21Shares Solana ETF proposals, both of which now face the October 16 deadline. The regulatory orders cited the need for “sufficient time to consider” proposed rule changes to list Commodity-Based Trust Shares under BZX Rule 14.11(e)(4), which outlines eligibility, disclosure, and surveillance requirements for exchange-traded products backed by physical commodities [1].

The regulatory timeline has been extended multiple times since initial filings began in January 2025. VanEck was the first to file a Solana ETF application in June 2024 via Form S-1 registration, followed by 21Shares in the same month planning a listing on the Cboe BZX Exchange. Additional applications from major financial institutions have since joined the queue. Grayscale filed its application in January 2025 to convert its existing GSOL trust into a spot ETF for NYSE Arca listing, while Franklin Templeton submitted both S-1 and 19b-4 forms in March 2025 for a Cboe BZX listing. Fidelity’s March 25 application includes provisions to stake a portion of SOL holdings through third-party providers, potentially allowing the ETF to generate yield for investors [1].

Industry analysts have highlighted factors complicating the approval process. “Even with market infrastructure for Solana maturing in terms of liquidity, custody solutions, and institutional interest, unresolved concerns around regulatory classification, network stability, and potential concentration of control within the ecosystem are still looming,” said Shawn Young, chief analyst at MEXC Research [1]. The regulatory classification of Solana as a commodity or security remains a central issue. “The SEC’s full extension likely stems from Solana’s still-shaky security-or-commodity status, a call that carries far more consequence than any other concern,” Vincent Liu, chief investment officer at Kronos Research, added. “Market manipulation and surveillance safeguards are also squarely in play, as both factors will set the tone for all future altcoin ETF bids” [1].

The outlook for Solana ETFs follows the recent success of other cryptocurrency investment products. The iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF, has amassed over $37 billion in assets since its launch last year [1]. In the broader competitive landscape, BlackRock has confirmed it currently has no plans to launch a Solana product, leaving the field open for other major players to gain first-mover advantage in the Solana ETF market [1].

Recent developments suggest the SEC is pushing issuers to amend and refile applications for spot Solana ETFs by the end of July, hinting at faster-than-expected approvals. This regulatory pressure follows the automatic approval of the REX-Osprey SOL and Staking ETF, which began trading under different rules and created competitive dynamics the SEC traditionally seeks to avoid [1]. The SEC’s push for expedited refiling follows the approval of the REX-Osprey SOL Staking ETF (SSK), the first US-listed Solana investment product to incorporate staking. This development has added urgency to the review process, as regulators typically prefer simultaneous approvals to prevent market distortions [1].

Solana ETF applications leverage the same regulatory framework used successfully by Bitcoin and Ethereum ETFs. The proposals utilize the Commodity-Based Trust Share structure and rely on surveillance-sharing arrangements tied to CME Solana futures, which launched in February 2025 [1]. Outside the United States, Canada’s Toronto Stock Exchange launched four Solana spot ETFs in April, complete with staking features, enhancing institutional interest and exerting international regulatory pressure on the SEC. These global precedents strengthen the case for U.S. approval and demonstrate established market demand [1].

Betting markets reflect growing optimism around potential approval. Polymarket shows a 77% probability that the SEC will greenlight spot Solana ETFs in 2025 [1]. Bloomberg analysts note that Solana, along with litecoin (LTC) and digital asset index baskets, has a 90% chance of ETF approval, with XRP at 85% probability [1]. JPMorgan analysts estimate that, upon approval, Solana ETFs could attract between $3 billion and $6 billion in net assets within the first year, significantly impacting SOL’s market value [1].

The October 16 deadline represents a critical inflection point for the industry. A positive decision could unlock institutional capital flows comparable to those seen in Bitcoin and Ethereum ETFs, while further delays might dampen short-term enthusiasm for altcoin ETF products [1]. With multiple heavyweight financial institutions committed to the Solana ETF race and market infrastructure continuing to mature, the stage is set for a regulatory decision that could reshape cryptocurrency investment accessibility and institutional adoption patterns across the digital asset ecosystem [1].

Source: [1] SEC Uses Final Extension for Solana ETF Applications, October 16 Deadline Set (https://coinmarketcap.com/community/articles/689edae6f1d220737b2efe47/)