Staking the Claim: Solana ETFs to Attract Billions via Yield

Grayscale, Fidelity, Bitwise, and other major asset managers have submitted revised S-1 filings for spot Solana (SOL) exchange-traded funds (ETFs) to the U.S. Securities and Exchange Commission (SEC). These filings incorporate staking features, enabling the ETFs to generate yield by leveraging Solana’s proof-of-stake mechanism. Analysts, including Nate Geraci of NovaDius Wealth Management and James Seyffart of Bloomberg, suggest approval could occur within two weeks, citing streamlined regulatory processes and recent precedents like the REX-Osprey Solana Staking ETF’s successful launchtitle1^[1]. The inclusion of staking in the filings aligns with growing institutional demand for yield-generating crypto products, with Bitwise’s European Solana staking ETP recently attracting $60 million in inflowstitle2^[2].

The SEC’s recent regulatory shifts, such as approving Grayscale’s Ethereum Trust conversion to a more standardized framework, have eased the path for similar Solana ETFs. This framework allows products to trade without case-by-case approvals, reducing delaystitle3^[3]. The amended filings address the SEC’s concerns over staking mechanics and in-kind redemptions, critical for compliance with securities laws. Fidelity’s proposal, for instance, explicitly outlines staking rewards reinvestment, while Grayscale’s trust structure designates Solana tokens to staking accountstitle4^[4]. Analysts attribute the accelerated timeline to the SEC’s increasing familiarity with crypto product structures, as seen in prior Bitcoin and Ethereum ETF approvalstitle5^[5].

Market reactions to the filings have been positive. The REX-Osprey SOL + Staking ETF (SSK) recorded $10.6 million in net inflows in a single day, surpassing $250 million in assets under management within two months of launchtitle6^[6]. Additionally, the ETF’s conversion to a regulated investment company improved tax efficiency, removing federal and state-level taxes at the fund leveltitle7^[7]. Bloomberg analysts estimate a 90% chance of approval by late October 2025, with some predicting a decision within three to five weeks of the June 2025 filingstitle8^[8]. The SEC’s final deadline for Grayscale’s spot Solana ETF conversion is October 10, 2025, though earlier approvals are possible if regulatory hurdles are clearedtitle9^[9].

Staking-enabled ETFs could redefine institutional exposure to Solana, offering both price appreciation and network rewards. This model enhances net asset value (NAV) for shareholders and aligns with broader trends in yield-focused crypto investments. Grayscale’s CoinDesk Crypto 5 ETF, which includes Solana and XRP, recorded $22 million in trading volume on its first day, signaling strong demand for diversified crypto portfoliostitle10^[10]. Analysts note that staking features could also influence Ethereum ETF approvals, as the SEC’s willingness to accommodate such mechanisms in Solana ETFs may set a precedent for similar products.

Institutional interest in Solana has surged, with European staking ETPs and U.S. spot ETFs attracting significant capital. Bitwise’s European ETP, BSOL, offers an 8% annual staking yield, differentiating it from U.S. products that currently exclude staking due to securities law constraints. The SEC’s cautious approach to classifying Solana as a security remains a key hurdle, but regulated futures markets and custody solutions like the Depository Trust & Clearing Corporation (DTCC) address many of these concerns. Prediction markets, including Polymarket, assign an 89–95% probability of approval by late 2025, reflecting confidence in regulatory clarity.

The potential approval of Solana ETFs marks a pivotal step in crypto’s integration into traditional finance. Analysts project $3–6 billion in inflows post-approval, with price targets for SOL ranging from $300 to $1,000, depending on market conditions. This development could accelerate adoption in decentralized finance (DeFi), gaming, and tokenized real-world assets, benefiting infrastructure providers like Coinbase and institutional holders of Solana. However, risks such as network outages and volatility remain, underscoring the need for balanced risk management by investors.