Staking-Enabled Solana ETFs Near Approval as Regulators Signal Institutional Crypto Shift

The U.S. Securities and Exchange Commission (SEC) is on the verge of approving the first Solana (SOL)-backed exchange-traded funds (ETFs), following a surge of updated S-1 filings from major asset managers that include staking provisions. Grayscale, Fidelity, Bitwise, VanEck, and others submitted amendments to their applications this week, signaling institutional confidence in Solana’s institutional adoption. Analysts, including Nate Geraci of NovaDius Wealth Management, predict regulatory green lights within two weeks, citing the SEC’s recent efficiency in processing crypto-related applicationsThe Block, (https://www.the-blockchain.com/2025/09/27/solana-etf-nears-approval-as-grayscale-fidelity-file-s-1s-with-staking-feature/)^[1]. The filings enable funds to generate additional yield by staking Solana tokens, distributing rewards to shareholders either in cash or SOL, which could enhance net asset value (NAV) and differentiate these products from traditional crypto-tracking fundsCoinCentral, (https://coincentral.com/multiple-solana-staking-etfs-could-get-sec-approval-within-two-weeks/)^[2].

The staking feature, a core innovation in these filings, aligns with broader regulatory shifts. In September, the SEC streamlined approval frameworks for Ethereum-based products, removing repetitive hurdles and enabling standardized listing processesThe Block, (https://www.the-blockchain.com/2025/09/27/solana-etf-nears-approval-as-grayscale-fidelity-file-s-1s-with-staking-feature/)^[1]. This precedent may expedite Solana ETF approvals, bypassing previous case-by-case reviews. Bloomberg analyst James Seyffart noted the synchronized filings as a sign of regulatory coordination, with all major issuers submitting amendments simultaneouslyCoingape, (https://coingape.com/solana-etf-update-grayscale-fidelity-others-files-s-1-with-staking-approval-expected-in-two-weeks/)^[3]. The staking mechanism allows funds to participate in Solana’s proof-of-stake consensus system, earning rewards that contribute to fund income and shareholder returnsCoinPedia, (https://coinpedia.org/news/canary-capital-updates-sec-filing-for-solana-etf-with-staking/)^[4].

Global demand for Solana-based products is surging, further bolstering the filings’ momentum. Bitwise’s European Solana staking ETP attracted $60 million in inflows over five trading days, while the U.S.-listed REX-Osprey Solana Staking ETF reported $10.6 million in net inflows and surpassed $250 million in assets under management (AUM) within two monthsThe Block, (https://www.the-blockchain.com/2025/09/27/solana-etf-nears-approval-as-grayscale-fidelity-file-s-1s-with-staking-feature/)^[1]. REX-Osprey also restructured its fund to a regulated investment company, eliminating federal and state taxes at the fund level and improving tax efficiencyCoinCentral, (https://coincentral.com/multiple-solana-staking-etfs-could-get-sec-approval-within-two-weeks/)^[2]. Grayscale’s diversified CoinDesk Crypto 5 ETF, which includes Solana and XRP, recorded $22 million in first-day trading volume, indicating growing interest in multi-asset crypto strategiesCoingape, (https://coingape.com/solana-etf-update-grayscale-fidelity-others-files-s-1-with-staking-approval-expected-in-two-weeks/)^[3].

The regulatory environment for crypto ETFs has evolved rapidly, with the SEC’s recent approval of Grayscale’s ETH products marking a shift from discretionary approvals to standardized frameworksCoinPedia, (https://coinpedia.org/news/canary-capital-updates-sec-filing-for-solana-etf-with-staking/)^[4]. This change, coupled with the inclusion of staking in Solana filings, may set a precedent for other proof-of-stake cryptocurrencies. Markus Thielen of 10x Research highlighted that Ethereum ETF staking could “dramatically reshape the market,” a sentiment echoed by Pantera Capital, which described Solana as “next in line” for institutional adoptionCryptonews, (https://cryptonews.com/news/solana-etf-approvals-could-arrive-by-mid-october-says-analyst/)^[5]. Analysts argue that the ability to generate yield through staking could drive broader altcoin exposure and attract capital to the crypto ecosystemThe Block, (https://www.the-blockchain.com/2025/09/27/solana-etf-nears-approval-as-grayscale-fidelity-file-s-1s-with-staking-feature/)^[1].

With 16 Solana ETF applications among 96 pending crypto ETF proposals, the asset is positioned to dominate the final quarter of 2025CoinPedia, (https://coinpedia.org/news/canary-capital-updates-sec-filing-for-solana-etf-with-staking/)^[4]. The competitive landscape is intensifying as firms vie for early inflows, with staking emerging as a key differentiator. Grayscale’s strategic expansion into diversified crypto funds and REX-Osprey’s tax-optimized structure underscore the sector’s innovation. If approved by mid-October, these ETFs could catalyze a convergence between traditional finance and Solana’s blockchain ecosystem, enhancing institutional participation and market liquidityCryptonews, (https://cryptonews.com/news/solana-etf-approvals-could-arrive-by-mid-october-says-analyst/)^[5].