The U.S. Securities and Exchange Commission (SEC) has requested the Solana (SOL) spot exchange-traded funds (ETFs) issuers to submit amended S-1 registration statements within the next week. This move signals a significant acceleration in the regulatory process and has industry watchers buzzing about the possibility of a Solana ETF approval as soon as July 2025.

Solana ETF

Following the historic approvals of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May 2025, the SEC’s latest action brings Solana to the forefront as the next major digital asset poised for ETF status. The regulator’s request for updated S-1 filings is more than a procedural step, it’s a clear sign that the SEC is actively engaging with prospective issuers and could be ready to greenlight new crypto investment products in the coming weeks.

What’s on the SEC’s Mind?

According to multiple reports, the SEC’s focus is on two critical aspects of the proposed Solana ETFs:

1. In-Kind Redemptions: The agency wants clarity on how ETF issuers will handle redemptions, specifically whether investors can redeem their shares for actual SOL tokens rather than cash.

2. Staking: In a notable shift, the SEC appears open to allowing staking within the ETF structure. This would enable investors to earn rewards by participating in the Solana network’s proof-of-stake consensus, potentially making Solana ETFs even more attractive.

The SEC has promised to review the amended filings and provide feedback within 30 days.

Who’s in the Race?

The competition to launch the first Solana ETF is fierce. Major asset managers including VanEck, Bitwise, Fidelity, Grayscale, Franklin Templeton, Canary Capital, and 21Shares have all filed applications or expressed intent to do so. Grayscale, for instance, is looking to convert its existing SOL Trust into a spot ETF, mirroring its successful strategies with Bitcoin and Ethereum.

CoinShares has also registered a Solana ETF in Delaware, hinting at a possible entry into the race. The first firm to market could gain a significant advantage in attracting investor interest.

Market Reaction

The news has already sent ripples through the market. Solana’s price surged over 5% following reports of the SEC’s accelerated review process, with the token jumping above $164 in the immediate aftermath. Technical analysts suggest that if SOL can break through key resistance levels, it could rally further, potentially testing the $183 mark.

Bloomberg ETF analysts Eric Balchunas and James Seyffart have assigned Solana ETFs a 90% chance of SEC approval, with Seyffart stating that July is now a realistic target for a decision. While the official deadlines for SEC decisions extend into October, the current momentum suggests that Solana could lead a new wave of altcoin ETFs much sooner than expected.

What’s Next?

As the SEC reviews updated filings and the crypto industry holds its breath, all eyes are on Washington. If Solana ETFs receive approval in July, it would mark another watershed moment for mainstream crypto adoption, offering traditional investors unprecedented access to one of the fastest-growing blockchain ecosystems.