Seven major asset management firms have filed updated applications for exchange-traded funds (ETFs) based on the cryptocurrency Solana, marking a significant step toward obtaining regulatory approval.
What to Know About Solana ETF Applications
1. Seven asset managers filed amended S-1 registration statements for Solana ETFs with updated staking and custody provisions on August 1.
2. Grayscale's proposal includes a 2.5% annual fee structure, while VanEck incorporates active staking rewards and dual custodianship.
3. Solana's price dropped over 3% to $170.24 following the news, suggesting these developments may already be factored into current valuations.
Market Response to Updated Applications
The amendments reflect a strategic response to SEC expectations established through recent Bitcoin and Ethereum ETF approvals. Asset managers have incorporated in-kind redemption structures similar to those approved for existing cryptocurrency ETFs.
Market analysts suggest the coordinated timing of these filings indicates ongoing dialogue between asset managers and SEC officials. The revised applications address concerns about custody arrangements and operational mechanics that regulators have flagged in previous cryptocurrency ETF reviews.
Financial experts believe this approach increases the likelihood of eventual approval.
A regulatory decision could emerge by late August or September 2025.
General Information on Cryptocurrency ETFs and Staking
Exchange-traded funds represent investment vehicles that track underlying assets while trading on traditional stock exchanges. Cryptocurrency ETFs allow investors to gain exposure to digital assets without directly purchasing or storing the tokens themselves.
Staking refers to the process of locking cryptocurrency tokens to support network operations and earn rewards. Solana's proof-of-stake consensus mechanism allows token holders to delegate their holdings to validators and receive periodic distributions.
In-kind redemption structures enable large institutional investors to exchange ETF shares directly for underlying assets rather than cash, which helps maintain efficient pricing and reduces tracking errors between ETF share prices and underlying asset values.
The coordinated ETF filing strategy demonstrates growing institutional confidence in Solana's long-term prospects despite short-term price volatility. While regulatory approval remains uncertain, the updated applications address key SEC concerns.
