Seven asset managers have updated their applications for launching a Solana ETF, but the approval process from the SEC is slow and filled with questions.
New Wave of Solana ETF Applications
Seven asset managers, including Fidelity, Grayscale, and VanEck, have filed or updated their applications for a Solana-based ETF. They aim to capitalize on the growing interest inspired by the successful Bitcoin ETF cases. However, there is a long road ahead between ambition and actual approval. Each application involves numerous adjustments and negotiations. Analyst James Seyffart commented, "I believe there must be back-and-forth between the SEC and issuers to settle the details, so I doubt it." He emphasized that the process remains slow, and this is not new: it took over ten years for Bitcoin to get its own ETF.
Slow Regulatory Pace
Despite the evolution of the crypto market, regulatory barriers remain firm. The regulations stay the same, and timelines drag on. Even with pressure from large financial firms, the SEC maintains control over the pace of approvals. Seyffart remains skeptical. "It’s possible. But I think it is only a matter of time before the United States has both ETH and SOL," he stated. Regulatory authorities continue to ask for more details, including redemption conditions, security methods, and reward distribution. The more uncertainties there are, the slower the process becomes.
Expectations for ETF Approval
Financial product issuers are becoming increasingly impatient, recognizing that the SEC's slowness poses a significant obstacle. Solana, meanwhile, is ready for a revolution in the sector but is still waiting for its moment. There are currently around 70 crypto ETFs waiting for SEC approval, and the commission seems to be employing a time-stalling tactic. Expectations for the Solana ETF include: 7 applications pending approval, 2025 as the target year for approval according to Bloomberg, and a 90% probability of approval by that time.
The approval process for Solana ETFs remains lengthy and complicated, and despite positive hopes, the final outcome is still uncertain.
