Solana ETFs may face delays until 2026 due to SEC lawsuits
Solana ETFs may face delays until 2026
Solana exchange-traded funds (ETFs) may not debut in the United States until 2026, according to James Seyffart, a Bloomberg Intelligence analyst.
Despite the promise of a more crypto-friendly regulatory environment under the incoming Trump administration, ongoing lawsuits and the Securities and Exchange Commission’s (SEC) cautious review process could prolong approvals, according to Cointelegraph.
Seyffart, speaking with Blockworks, pointed out that the SEC’s Division of Enforcement classifies Solana (SOL) as a security, creating roadblocks for other divisions to assess its viability for an ETF. The agency’s history of taking 240–260 days to review ETF filings further complicates the timeline.
Legal and Regulatory Challenges Persist
Solana is among several cryptocurrencies caught in the crosshairs of the SEC, which has aggressively pursued regulatory actions under President Joe Biden’s administration. The lawsuits against crypto exchanges for listing SOL as an unregistered security have left ETF issuers in a bind, Seyffart explained.
Although President-elect Donald Trump has pledged to make the U.S. the “world’s crypto capital” and plans to appoint industry-friendly regulators, Seyffart believes the procedural and legal barriers could stretch the timeline into 2026.
In 2024, the SEC approved spot Bitcoin and Ether ETFs but left altcoin ETFs, including those for Solana, in regulatory limbo. Filings for SOL ETFs, along with applications for index funds holding diverse cryptocurrencies, have yet to be acknowledged by the agency.
Not all experts agree with Seyffart’s assessment. Matthew Sigel, VanEck’s head of digital asset research, expressed confidence in November that a SOL ETF could be approved before the end of 2025. However, the path forward remains uncertain as the SEC’s stance on Solana continues to evolve.
JPMorgan Managing Director Nikolaos Panigirtzoglou has been skeptical about short-term ETF approvals for Solana, XRP, and other cryptocurrencies. However, a leadership change at the SEC under Trump could pave the way, with Solana and XRP-based ETFs potentially attracting $14 billion in their first year.
