SEC Requests Updated S-1 Forms for Solana ETFs
The Securities and Exchange Commission (SEC) has instructed future issuers of Solana ETFs to submit revised S-1 forms by the end of the coming week.
According to two sources, the agency indicated it would provide feedback on the S-1 within 30 days after submission.
The SEC is specifically looking for updates related to the redemption of physical items and has inquired about the issuer’s approach to staking. Interestingly, the agency seems open to incorporating staking into the Solana ETF.
One insider estimated that these updates could potentially accelerate the approval process for the Solana ETF, possibly within 3 to 5 weeks. James Seyfert from Bloomberg Intelligence expressed a hopeful outlook for approval this year, suggesting it might even happen relatively soon, perhaps in July.
“We think the SEC may now expedite the processing of Solana’s 19B-4 filing and ETFs quicker than initially expected. It seems the issuer, along with industry members, may be working on establishing the rules alongside the SEC and its crypto task force. However, the final decision deadline for these applications remains set for October,” Seyfert noted.
Crypto Exchange-Traded Products allow investors to gain exposure to the spot prices of underlying cryptocurrencies. There are several players in the market vying for the Solana ETF, including Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale.
Responses from the SEC, VanEck, Fidelity, and Bitwise were not available at this time. Requests for comments from Canary Capital, 21Shares, Grayscale, and Franklin Templeton also went unanswered.
Additionally, Grayscale is contemplating converting its SoL Trust into a spot ETF, similar to strategies employed for Bitcoin and Ethereum ETFs.
Last month, the SEC postponed its decision regarding Grayscale’s Solana ETF, stating it had yet to reach a “conclusion” on the 19B-4 filing aimed at listing the proposed spot ETFs.
Regulators did officially approve Grayscale’s submission in February. That same month, Seyfert called this approval “significant,” especially given the SEC’s previous rejections of such applications.
“We believe that most, if not all, crypto ETF applications will be approved this year, likely sooner than others,” he mentioned back then.
Seyfert added that the existing derivative-based ETFs for both Solana and XRP have paved the way for spot approval.
“If the SEC intervenes to block the Spot XRP or Spot Solana ETF, it would be quite surprising,” he remarked.
In April, Bloomberg Intelligence analyst Eric Balchunas raised his probability assessment for the Solana ETF’s approval from 70% to 90%.
Ben Strack of Forward Guidance previously reported that the product’s deadline for a decision is in October, indicating that the SEC must make its call by then. However, some sources suggest institutional approval for the ETF might be achieved sooner.
Following the launch of Sol futures by the CME in February—a move that has been seen as beneficial for potential SOL ETFs—various Sol Futures ETFs have already been introduced, including a couple from volatility stocks.
This is a developing story.
