SEC postpones decision on Solana ETF applications again
SEC delays Solana ETF decisions, opens public comment period
The U.S. Securities and Exchange Commission (SEC) has delayed decisions on four proposed Solana exchange-traded funds (ETFs), including high-profile filings from Bitwise, 21Shares, VanEck, and Canary.
In a May 19 filing, the agency said it would “institute proceedings” to evaluate whether the ETFs comply with regulatory standards under the Securities Exchange Act, reports Crypto News.
This procedural step opens a public comment period and extends the SEC’s review window.
The Commission emphasized that the decision to initiate proceedings “does not indicate that the Commission has reached any conclusions.” Instead, the agency cited a need for further analysis—particularly around fraud prevention, investor protections, and overall market integrity—as required by Section 6(b)(5) of the Exchange Act.
Spot Solana ETFs face added scrutiny despite surging demand
Bitwise’s proposal, submitted through Cboe’s BZX Exchange in January, aims to launch a fund directly holding Solana (SOL), benchmarked against the CME CF Solana-Dollar Reference Rate. 21Shares, which already operates spot Bitcoin and Ethereum ETFs in the U.S. and abroad, also filed for a Solana fund earlier this year. Both filings are part of a broader wave of altcoin ETF applications submitted in 2025, reflecting rising institutional interest in crypto assets beyond Bitcoin and Ethereum.
Despite increasing momentum, the SEC has not yet approved any altcoin-based spot ETFs. The Commission has historically taken a cautious stance on such products, often citing insufficient market surveillance and concerns about volatility and market manipulation.
More delays expected amid ETF backlog
The SEC’s Solana delays mirror broader hesitations across other pending crypto ETF filings, including those tied to XRP and Dogecoin. Industry analysts, including Bloomberg’s James Seyffart and Eric Balchunas, remain optimistic, projecting a 90% chance of approval for Solana and Litecoin ETFs by the end of 2025. They point to growing institutional demand and recent commodity-like classifications for these tokens as reasons for optimism.
Still, the SEC’s extended deliberation could push timelines further, especially if the public comment process triggers additional rounds of scrutiny. For now, investors awaiting regulatory clarity on the next generation of crypto ETFs may be left in limbo.
Recently we wrote that the U.S. Senate has taken a major step toward regulating the $250 billion stablecoin market, voting 66 to 32 in favor of advancing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS).
