The United States Securities and Exchange Commission (SEC) has extended its review of Grayscale’s application for a spot Solana ($SOL) exchange-traded fund (ETF), delaying any final decision until at least October 2025.
The postponement, announced in a regulatory filing on 13 May, marks the latest in a series of delays by the agency as it carefully weighs the inclusion of new digital asset products within the regulated fund environment.
The crypto community now turns its attention to approaching deadlines for several other crypto ETF proposals, including those tied to Polkadot ($DOT), XRP ($XRP), and Litecoin ($LTC), expected throughout June.
Industry analysts suggest these decisions could shape the next phase of institutional engagement with cryptocurrencies, even as regulatory caution remains firmly in place.
Review timeline extended
Grayscale’s Solana Trust ETF, if approved, would be listed on the New York Stock Exchange Arca and hold SOL tokens in cold storage, offering investors indirect exposure to Solana without the need for self-custody.
This offering would fall under the scrutiny of Section 6(b)(5) of the Securities Exchange Act, which outlines standards for investor protection and market integrity.
According to the SEC’s notice, the agency will utilise the full 240-day review window, meaning the earliest decision would likely not arrive before September, with the possibility of further extensions.
The SEC’s cautious approach comes as no surprise to industry watchers. Bloomberg Intelligence analyst, James Seyffart, highlighted the pattern in a post on social media platform X earlier this month. He noted that the delay follows a similar decision to extend the review of Canary Capital’s Litecoin ETF.
Spot ETFs are widely regarded as essential vehicles for bringing additional liquidity and institutional adoption to crypto markets.
The recent success of US spot Bitcoin ETFs underscores this point, with those funds capturing approximately 75% of new investments following their January launch, which pushed Bitcoin’s price back above the $50,000 level by February.
The chief analyst at Bitget Research, Ryan Lee, observed that while Solana’s ETF might not achieve the same level of inflows as Bitcoin’s products, it could still drive substantial institutional participation. “It offers a regulated investment vehicle that could attract billions in capital over the long term”, Lee explained.
Investor sentiment appears to reflect this optimism, despite the regulatory hurdles. According to data from decentralised betting platform Polymarket, traders currently price in an 82% chance that a Solana ETF will secure approval before the end of 2025. Similarly, they predict an 80% chance for a Litecoin ETF green light this year.
Yet, the SEC’s schedule remains packed with pending applications. By 11 June, the agency must decide on Grayscale’s Polkadot ETF, followed closely by 21Shares’ own Polkadot product on 24 June.
The calendar also includes decisions on Franklin Templeton’s spot XRP ETF and Bitwise’s spot Dogecoin ETF, both slated for 17 June.
However, these deadlines could also face postponement, as the SEC tends to exhaust its full review period, mirroring the lengthy processes observed for Bitcoin and Ethereum ETFs in prior years.
Solana’s rapid growth spurs institutional interest
Amid regulatory uncertainty, Solana continues to post remarkable growth figures, solidifying its position as 2025’s fastest-growing Layer 1 blockchain.
According to 21Shares’ State of Crypto report, Solana has overtaken Ethereum in developer activity and is rapidly expanding across decentralised finance (DeFi), payments, and artificial intelligence integrations.
In the opening months of 2025 alone, Solana processed $364 billion in transaction volume, surpassing the combined activity of Ethereum and Coinbase.
The blockchain now boasts over 100 million monthly active users, a figure attributed to its sub-second transaction finality and minimal fees, which average under $0.01.
Major financial and tech players have taken notice. Companies like Visa, Shopify, and Stripe are now settling stablecoin payments on the Solana network.
Meanwhile, PayPal and First Digital are reported to hold Solana-native assets exceeding $100 million in value.
Solana’s stablecoin supply has witnessed explosive growth, soaring by 600% year-over-year to reach $12 billion as of the first quarter of 2025.
This reflects an expanding use case for stablecoins in AI-driven applications, Web3 services, and digital payments.
Despite such milestones, challenges remain. The report flags concerns over validator centralisation and the end of transaction fee burns, though it argues these risks are currently outweighed by Solana’s broader growth trajectory.
Using a discounted cash flow model, 21Shares estimates Solana’s fair value could range between $520 and $1,800, depending on network adoption. This represents a substantial upside from its present trading range near $150.
Analysts suggest that if Solana captures even half of Ethereum’s market capitalisation, it could strengthen its dominance in payments, AI, and institutional use cases, bolstering its status as a leading Layer 1 chain.
Price rallies past key resistance
Solana’s price movements have echoed its growing prominence. After a steady climb from an April low of $95, SOL surged past $180 this week, briefly touching $185 before retreating slightly to around $179.
According to market watchers, the rally was bolstered by positive sentiment in the broader crypto market, which has benefited from easing trade tensions between the US and China and a new trade agreement with the United Kingdom.
Technical indicators suggest the trend could continue. Crypto analyst, Ali Martinez, noted that Solana’s breakout above the $175 resistance level marked a significant bullish trigger.
“The breakout from an ascending triangle pattern signals strong buying momentum”, Martinez explained. The increase in trading volume during this move further validated the breakout, setting the stage for a potential rally toward the psychological $200 mark.
On-chain data supports this bullish view. The open interest-weighted funding rate for Solana turned positive from late April to mid-May, indicating a shift in market sentiment favouring long positions.
Meanwhile, derivatives volume jumped by 36.65% to reach $19.46 billion, and open interest climbed to $6.6 billion, reflecting increasing trader confidence.
Solana’s DeFi landscape is also undergoing significant changes. According to Pine Analytics, private decentralised exchanges (DEXs) such as SolFi, Obric v2, and ZeroFi have taken centre stage, accounting for up to 65% of Jupiter-routed trading volume.
These private DEXs operate without public user interfaces, instead using smart contracts to manage internal vaults. They have become the preferred platforms for trading highly liquid pairs like SOL and USDC/USDT, as well as emerging meme coins such as dogwifhat ($WIF) and Bonk ($BONK).
“Their routing share reflects performance, not branding”, Pine Analytics stated, explaining that these DEXs win routes by offering tight quotes and reliable fills.
However, concerns about transparency linger due to the anonymous nature of their backers, while planned Solana network upgrades aimed at enhancing public DEX efficiency could eventually erode their competitive edge.
Technically, SOL’s price remains in a bullish structure, having broken above its 200-day moving average, an important trend indicator.
Analysts suggest that if Solana can hold above the $175 level, its path toward $200 appears increasingly plausible.
However, caution persists. The Relative Strength Index (RSI) has crossed into overbought territory, hinting that a cooling-off period or minor correction could occur before any sustained push higher.
Market participants continue to monitor these dynamics closely, with every regulatory or technical development seen as a gauge of how fast Solana and other altcoins might gain traction within mainstream financial markets.
