The US Securities and Exchange Commission (SEC) is moving faster than expected in reviewing applications for Solana-based exchange-traded funds (ETFs).
This step brings Solana ($SOL) closer to becoming the third cryptocurrency, after Bitcoin and Ethereum, to be available as a spot ETF in the United States.
The SEC recently asked companies applying for these ETFs to update their S-1 registration forms by mid-June. These forms are an important part of the approval process.
They include key information about the ETF, such as how it works, the risks involved, and the fees investors will pay. The SEC said it will provide feedback within 30 days of getting the updated filings.
According to a crypto news site, this faster timeline could mean that Solana ETFs might be approved between July and October 2025. As per sources, the approval could come as soon as three to five weeks after the updates are submitted.
ETF interest grows after Bitcoin and Ethereum approval
After the SEC approved spot ETFs for Bitcoin and Ethereum in 2024, interest in similar products for other cryptocurrencies exploded.
Companies filed many applications to launch ETFs for Solana, XRP, and others. However, the SEC hasn’t approved any altcoin ETFs yet.
Still, the process is moving forward. The SEC officially acknowledged Grayscale’s spot Solana ETF application back in February 2025 – a key moment, since the agency had previously ignored such proposals.
But in May, the SEC delayed decisions on Solana ETF filings from both Bitwise and 21Shares, saying it needed more time to look into the technical, legal, and investor protection aspects.
Now, by asking companies to re-submit their S-1 forms, the SEC seems ready to move the process forward. This has led many to believe that Solana could be next in line for approval.
Bloomberg ETF analyst, James Seyffart, believes there is a 90% chance that Solana ETFs will be approved sometime in 2025. He sees XRP as the next most likely altcoin ETF to gain approval, with an 85% chance.
Other cryptocurrencies like Dogecoin ($DOGE), Cardano ($ADA), Polkadot ($DOT), Hedera ($HBAR), and Avalanche ($AVAX) also have pending ETF applications, but they appear to be further behind in the review process.
Staking could be a game-changer
One of the reasons Solana ETFs are gaining attention is because of a feature that could make them different from Bitcoin and Ethereum ETFs: staking.
Solana uses a proof-of-stake (PoS) system instead of the proof-of-work system used by Bitcoin. In PoS, people who hold the token can earn rewards by helping validate transactions on the network.
The SEC’s current review includes questions about whether ETFs should include this staking feature.
According to sources familiar with the SEC’s request, the agency is open to including staking in Solana ETF products. If that happens, investors could earn rewards while holding Solana within the ETF.
This would make Solana ETFs more attractive to those looking for income-generating investments.
One proposed ETF that includes staking is the Canary Marinade SOL ETF. It plans to use Marinade Finance as its staking provider.
If approved, this would be the first ETF in the US to include staking within a Solana-based fund.
This development lines up with recent comments made by SEC Chairman, Paul Atkins. He has shown more support for blockchain technologies and said he sees value in decentralised finance, including staking.
Big names compete for Solana ETF approval
Seven well-known financial firms are now competing to launch Solana ETFs. These include Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, Franklin Templeton, and Fidelity.
This is the largest group of companies ever to apply for an ETF tied to a cryptocurrency other than Bitcoin or Ethereum.
Grayscale, in particular, is following the same strategy it used for Bitcoin and Ethereum ETFs. It plans to convert its existing Solana Trust into a spot ETF.
So far, the SEC has taken time to respond to these proposals. For example, it delayed decisions on applications from Bitwise and 21Shares, while requesting more information from all issuers.
The agency’s main concerns are about legal matters, investor protections, and how these funds will handle things like redemptions and staking.
Despite the slow process, optimism remains strong. Seyffart said on social media that while early approval is possible, a final decision may not come until the fourth quarter of 2025. “I wouldn’t expect to see them until late June or early July at the absolute earliest”, he wrote.
According to prediction platform, Polymarket, there is now a 91% chance that Solana ETFs will be approved this year.
That number reflects growing confidence in the process, especially given the SEC’s active review of both the S-1 and 19b-4 forms required for ETF approval.
Market responds with optimism, but volumes remain quiet
Following news of the SEC’s faster review process, Solana’s price saw a sharp increase. It rose from $147 to $165.05 in just one day, a jump of about 3.82%. Trading volume also went up by nearly 42%, reaching $5.39 billion, according to CoinMarketCap.
However, despite this price rise, Solana’s trading activity has cooled in recent weeks. A report from blockchain data firm, CryptoQuant, shows that both spot and futures trading volumes are in a “cooling” or “neutral” phase.
Their bubble maps – which display volume levels across exchanges – show a slowdown in trading, which some may see as a loss of interest.
But CryptoQuant offers another view. The report says this period of low activity could be a calm before a potential surge, especially with ETF approval rumours growing stronger.
The firm draws a pattern seen in past crypto rallies: “Low volume → ETF rumours → explosive moves”.
This suggests that the current quiet trading environment might actually be a build-up before a strong price increase, driven by possible regulatory approval.
CryptoQuant posed an interesting question: “Could it be the calm before the next Sol Summer storm?”.
Many investors believe that if the ETF is approved, Solana could see a new wave of demand from both institutional and retail investors.
Other crypto ETFs face delays
While Solana is moving forward, other digital assets like Polkadot and Hedera are facing delays. The SEC recently pushed back its review of ETF applications for both tokens.
These applications were submitted by Grayscale and Canary Capital, and both were expected to meet their second decision deadline this week. Instead, the SEC has requested more public comments.
New deadlines for these funds are now set for September and November 2025. Analysts believe that final decisions on DOT and HBAR ETFs likely won’t happen until late in the year.
Only Grayscale has filed for a Polkadot ETF so far. For Hedera, both Grayscale and Canary Capital have submitted applications, with Canary being the first to do so.
This difference in how fast tokens are being reviewed shows that the SEC is taking a case-by-case approach.
Solana is seen as more mature and ready, especially since it is already traded as futures on the CME and has futures-based ETFs available – both key requirements in past approvals for Bitcoin and Ethereum.
If approved, Solana ETFs would offer new options for people who want to invest in crypto using regulated platforms like stock exchanges.
It would also show that confidence in blockchain-based assets is growing among regulators.
The SEC’s latest moves suggest that crypto ETFs have a stronger future. Solana’s fast-tracked review could open the door for more altcoins to follow.
For now, all eyes are on the next 30 days, as companies wait for feedback and potential approval this summer. Whether Solana makes it to the finish line first, one thing is clear: the ETF race is heating up.
