On June 10, Blockworks reported that the U.S. Securities and Exchange Commission (SEC) has requested potential Solana exchange-traded fund (ETF) sponsors to submit amended S-1 Forms within a week. This directive, according to sources familiar with the discussions, signals a potential shift in the regulatory landscape for crypto ETFs. The SEC's move could accelerate the approval process for these financial products.
The SEC informed issuers it would respond within 30 days of the filings. The staff also instructed applicants to clarify procedures for in-kind redemptions and describe how funds might engage in Solana staking. Regulators appear open to allowing limited staking within the product structure.
One participant estimated a decision could be made in three to five weeks if the revised filings are received this week. Bloomberg ETF analysts James Seyffart and Eric Balchunas previously predicted that altcoin-related funds might not be approved before October. Seyffart mentioned that early approval might not happen until the first days of July.
Balchunas noted that ETFs tracking broad crypto indexes may be approved by the SEC within the next month. The recent filing by REX Shares for Ethereum and Solana ETFs with staking offerings may be the reason for fast-tracking approvals. Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale have all applied for a Solana ETF.
Grayscale seeks to convert its existing Solana Trust into an ETF, mirroring its approach for spot Bitcoin and Ethereum funds. On June 6, VanEck, Canary, and 21shares sent a letter to the SEC requesting the reinstatement of the first-to-file approval order. The ETF issuers argued that concurrent approvals remove the advantage for early filers. (Source: Blockworks, June 10)