SEC Expedites Solana ETF Registration Amidst Regulatory Shifts
The landscape of cryptocurrency exchange-traded funds (ETFs) is witnessing rapid changes as the U.S. Securities and Exchange Commission (SEC) accelerates its review process for Solana ETF sponsors. The SEC has instructed potential Solana ETF sponsors to submit fully revised registration statements by the month’s end. This directive significantly shortens the review period, initially set to conclude on October 10, marking the first statutory deadline for these applications.
Anticipation Builds for Solana as a Leading Spot Crypto ETF
The urgency from the SEC stems partly from the recent approval of the REX-Osprey SOL + Staking ETF (ticker SSK). This ETF, structured under the Investment Company Act of 1940, automatically became effective due to the absence of an SEC objection. It commenced trading on July 2 with an impressive $12 million in assets gathered on its debut day. Its quiet launch has provided it with a first-mover advantage, prompting the SEC to reconsider its strategy of simultaneous approvals for competing crypto funds, as seen previously with Bitcoin and Ether ETFs.
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SEC’s New Digital Asset ETP Framework
In addition to specific ETF approvals, the SEC is revamping its overall regulatory framework for digital asset exchange-traded products (ETPs). A recently released 12-page document outlines the agency’s expectations concerning disclosures on custody, staking rewards, and measures against market manipulation. The SEC staff are also in the process of creating a standardized template to replace the previous Form 19b-4 waivers that have governed past spot crypto ETF listings. This new template could potentially shorten approval timelines to approximately 75 days.
Industry Reactions and Future Expectations
The ongoing dialogue between the SEC and market participants suggests a positive trajectory. Analysts are closely monitoring these developments, with Bloomberg Intelligence’s James Seyffart noting recent procedural delays for Fidelity’s Solana ETF filing. Nate Geraci, president of ETF Store, highlighted that while efforts towards a comprehensive digital asset ETP framework are acknowledged, some issuers anticipate approvals may not occur until the early fall.
Potential for Solana’s Market Approval
Legal experts emphasize that the SEC could still approve a Solana fund under the current regulations by August, even if the new template is not finalized. Concurrently, the SEC is evaluating whether Solana’s market exhibits sufficient resistance to manipulation and whether the CME’s SOL futures can offer a suitable surveillance alternative—a criterion previously met by Bitcoin and Ether in 2024 and 2025, respectively.
Implications for Solana and Beyond
Should the SEC grant approval before the October deadline, Solana could become the third crypto asset with a U.S. spot ETF. This move could pave the way for other pending applications such as XRP, Litecoin, and Dogecoin. Market-makers are preparing for an expedited launch schedule, anticipating that once approved, the new products will be listed within days, underscoring the importance of market entry speed.
As of the latest update, Solana (SOL) is trading at $148.93, reflecting the market’s high interest and ongoing developments.
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