This week, Solana is back in the spotlight due to significant developments concerning possible SEC approval for Solana ETFs.
Amended Applications for Solana ETF
On Friday, several major investment firms, including Franklin Templeton, Galaxy Digital, VanEck, and Fidelity, resubmitted amended S-1 forms to list spot Solana exchange-traded funds (ETFs). Analysts see this move as a potential signal that the U.S. Securities and Exchange Commission (SEC) could be preparing to approve such crypto investment products.
Importance of S-1 Filings and Grayscale Fees
The S-1 form is a crucial step in obtaining SEC approval for a public ETF. Grayscale has also filed an amended S-1, revealing a 2.5% fee for its proposed Solana fund. This marks the first S-1 filing that Fidelity has made to list a spot Solana ETF.
Future of Solana ETF and SEC Actions
These filings come after reports that the SEC requested issuers to amend their S-1s, particularly regarding in-kind redemptions and staking mechanisms. Additionally, VanEck has included staking options, which are the subject of intense lobbying efforts by crypto interest groups pushing for SEC approval of staking-based ETFs for Ethereum and Solana, potentially offering additional yield to investors. The SEC has previously approved spot Bitcoin and Ethereum ETFs but has been cautious about other cryptocurrencies like Avalanche and Dogecoin.
The prospect of Solana ETF approval could improve, especially with a new SEC leadership that may be more open to cryptocurrencies. The race for SEC approval of the first Solana ETF is becoming increasingly urgent.
