The United States Securities and Exchange Commission (SEC) has taken a significant step toward approving spot Solana exchange-traded funds (ETFs) by acknowledging Grayscale’s amended application. This marks the first time the SEC has formally recognized a spot Solana ETF filing, a move that analysts describe as a departure from its previous stance.

Bloomberg ETF analyst James Seyffart emphasized the importance of this development, noting that the SEC had previously rejected such filings for Solana (SOL). Another Bloomberg analyst, Eric Balchunas, called the acknowledgment a “notable” milestone, attributing it to recent changes in SEC leadership. Previously, the SEC under Gary Gensler had dismissed Solana ETF applications on the basis that they were incorrectly classified as commodity trust shares, according to finance lawyer Scott Johnsson.

Despite this progress, Seyffart has cautioned that full approval for a spot Solana ETF may still be a long process, potentially extending into 2026. The primary complication lies in ongoing lawsuits against major exchanges like Binance and Coinbase, in which the SEC has classified Solana as an unregistered security. This classification presents a significant regulatory hurdle, as the SEC’s Division of Enforcement has argued that Solana does not qualify for a commodity ETF wrapper.

Increasing Crypto ETF Filings and Market Expectations

The SEC’s decision comes amid a wave of cryptocurrency ETF filings, as issuers test the agency’s willingness to approve new digital asset investment products. Notably, firms including 21Shares, Bitwise, VanEck, and Canary Capital have also submitted applications for spot Solana ETFs. Additionally, Bitwise has filed for a spot Dogecoin ETF, and Cboe BZX has requested approval for spot XRP ETFs on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise.

Litecoin ETFs appear to be next in line for potential approval, with the SEC acknowledging Grayscale’s filing for a spot Litecoin ETF on the same day as its Solana ETF acknowledgment. Seyffart has suggested that Litecoin could follow Bitcoin and Ethereum as the next cryptocurrency to receive regulatory approval for an ETF, as Canary’s S-1 filing for a Litecoin ETF is already under active review.

Market analysts estimate that an approved spot Solana ETF could attract between $3 billion and $6 billion in net assets within its first year. This prediction, made by JPMorgan, is seen as a reasonable projection by Balchunas. Meanwhile, Polymarket, a predictions market platform, estimates a 39% probability of SEC approval for a spot Solana ETF before July 31, reflecting growing optimism among investors.

While the SEC’s acknowledgment of Grayscale’s Solana ETF filing is just an initial step, it signals a shift in regulatory approach. The coming months will reveal whether this acknowledgment translates into concrete approvals or whether further regulatory obstacles will delay Solana’s entry into the ETF market.

Solana’s Explosive Q4: Memecoins, AI Tokens, and Record Revenues | HODL FM
Solana’s DeFi revenue soared 213% in Q4 2024, driven by memecoin…
hodl-post-imageHODL FM: The Wildest Ride in the Crypto MarketHODL Team
hodl-post-image

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.