Increased Solana ETF Applications Now Spotlight External Backing by Major Players
The Securities and Exchange Commission (SEC) has shown caution in approving cryptocurrency Exchange-Traded Funds (ETFs), particularly those on the spot market, due to concerns about fraud and investor protection. However, recent developments suggest that investing in Solana could soon become easier, more secure, and more profitable for crypto enthusiasts.
As of early August 2025, major applicants including Franklin Templeton, Fidelity, Bitwise, Grayscale, and CoinShares have filed amended S-1 registration statements with the SEC for their proposed spot Solana ETFs. These amendments align with SEC expectations and represent active engagement between issuers and regulators. The SEC is currently reviewing these proposals and has requested updates through July 2025.
Grayscale, in particular, aims to convert its existing Solana trust into an ETF but faces a delayed review extended to October 10, 2025. Other firms like Bitwise and Canary have submitted similar staking-inclusive proposals. Industry analysts estimate about a 95% chance of approval for spot Solana ETFs in general, though the acceptance of liquid staking features remains less certain.
Separately, the CBOE BZX exchange has proposed listing the Invesco Galaxy Solana ETF, which plans to track the Lukka Prime Solana Reference Rate and include staking yield mechanisms. This could potentially give it an edge over current Ethereum ETFs lacking staking benefits. The six-month eligibility period for CME-listed Solana futures to facilitate ETF approval will complete by mid-September, making a SEC decision before the October 10 deadline plausible.
If approved, Solana ETFs would provide individual investors with easier access to the rapidly growing blockchain. The influx of proposals for Solana ETFs indicates strong investor confidence in Solana's technology and future. The competition for launching Solana ETFs is intense, with major players like Franklin Templeton, Fidelity, Bitwise, and Grayscale vying for position.
Moreover, the emergence of new proposals from large companies may make the SEC more receptive to the idea of Solana ETFs. For instance, Grayscale has proposed imposing fees on SOL for its Solana ETF, and CoinShares has proposed a staking ETF for Solana. These proposals demonstrate the innovation and adaptability of the industry as it navigates the regulatory landscape.
In summary, these firms are in a late stage of the SEC approval process for spot Solana ETFs with staking provisions, awaiting final regulatory decisions likely by fall 2025. The SEC, while showing a generally favorable view, is still deliberating on staking-related product features. If approved, Solana ETFs could make cryptocurrency investing accessible to a wider audience, as they would not require technical skills.
- Grayscale, among other firms, has proposed a staking ETF for Solana, demonstrating a new approach towards cryptocurrency finance by integrating staking features, which could potentially attract more investors if approved.
- The Securities and Exchange Commission (SEC) is currently reviewing proposals for staking-inclusive spot Solana ETFs, signaling a possible shift in approach towards acknowledging the role of staking in finance and investing within the cryptocurrency space.
