The U.S. Securities and Exchange Commission (SEC) has requested that issuers of spot Solana exchange-traded funds (ETFs) update their S-1 filings by June, according to a report by Blockworks citing anonymous sources.
The SEC particularly seeks clarity from prospective issuers regarding the processes for in-kind redemption. Additionally, the regulatory body is reportedly considering allowing staking as part of these investment products.
Sources indicate that the SEC plans to offer feedback on the revised filings within 30 days following their submission.
High Probability of Solana ETF Approval
While the timeline for approval of spot Solana ETFs remains uncertain, Bloomberg’s senior ETF analyst, James Seyffart, estimates that a decision may arrive as early as the fourth quarter of 2025.
Seyffart tweeted, “Delays on spot crypto ETFs are expected. If we’re going to see early approvals from the SEC on any of these assets, I wouldn’t expect to see them until late June or early July at the absolute earliest.”
Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days.
If we’re gonna see early approvals from the SEC on any of these assets—I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.
— James Seyffart (@JSeyff) May 20, 2025
Seyffart has also speculated that the chances of altcoin ETF approvals in 2025 sit at 90% for both Solana and Litecoin, while XRP has an 85% likelihood. Other altcoins, including Dogecoin and HBAR, are estimated to have an 80% chance of receiving approval this year.
Firms that have submitted S-1 documents include notable names such as Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, Franklin Templeton, and Fidelity.
Interestingly, Seyffart posits that the SEC perceives these altcoins as commodities, which enhances their prospects for approval when compared to securities.
Solana ETF Strategy Mirrors Bitcoin and Ethereum Plans
Grayscale is set to implement a similar strategy to its Bitcoin and Ethereum products, working to transition its existing SOL Trust into a spot ETF.
In February, the SEC officially acknowledged Grayscale’s proposal for a spot Solana ETF. However, the agency deferred its decision in May, indicating that it had not yet come to any conclusions.
Last month, the SEC also postponed its decision regarding the SOL ETF proposals from Bitwise and 21Shares, stating that more time was needed to address technical specifications, legal inquiries, and investor protection matters.
In contrast, Brazil’s financial regulatory authority granted approval for the first-ever spot Solana ETF in August 2024. Subsequently, the nation sanctioned a second Solana spot ETF from asset manager Hashdex.
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