Several major asset management firms have submitted revised applications for spot Solana exchange-traded funds (ETFs), a move that analysts believe signals imminent approval from the U.S. Securities and Exchange Commission (SEC). The updated filings on Friday clarify plans for staking SOL tokens, a key feature that would allow the funds to generate additional yield for investors.
Key Takeaways
- Multiple asset managers, including Fidelity and Franklin Templeton, updated their S-1 filings for spot Solana ETFs.
- The revised documents focus on the mechanics of staking SOL tokens to earn yield.
- Analysts view the coordinated filings as a sign of positive engagement with the SEC.
- Market experts predict potential approval for these financial products within the next few weeks.
Coordinated Filings Signal Regulatory Progress
A wave of updated regulatory filings on Friday, September 27, has intensified speculation that the United States is on the verge of approving its first spot Solana ETFs. The group of high-profile applicants includes Fidelity, Franklin Templeton, CoinShares, Bitwise, Grayscale, Canary Capital, and VanEck.
This synchronized activity is the second such occurrence in recent months. In late August, many of the same firms amended their proposals to include provisions for both cash and in-kind redemptions, a structural detail important for ETF operations.
Industry observers interpret these coordinated updates as evidence of constructive dialogue between the asset managers and SEC staff. This back-and-forth process is a standard part of bringing new and complex financial products to market, often indicating that regulators are working through final details rather than preparing for a rejection.
Background on ETF Filings
An S-1 filing is the initial registration form required by the SEC for new securities to be offered to the public. Amendments to this document, especially when made by multiple issuers simultaneously, often reflect feedback or guidance received from the regulatory body, signaling that the approval process is advancing.
Staking Becomes a Central Feature
The latest revisions focus heavily on clarifying the mechanics of staking. Staking involves locking up a cryptocurrency's tokens to help secure the network. In return for their participation, stakers receive rewards, typically in the form of more tokens.
For a Solana ETF, incorporating staking would mean the fund could use its SOL holdings to earn these network rewards. This process would generate an additional source of return, or yield, for the fund's shareholders, beyond the simple price appreciation of Solana itself.
Fidelity, which operates the second-largest spot Bitcoin ETF, explicitly stated in its revised filing that it plans to stake some or all of its fund's Solana holdings. This detail is significant, as it confirms that major institutions are committed to offering yield-generating crypto products.
"The coordinated nature of these filings suggests close collaboration with the SEC. Issuers are responding to regulatory feedback in unison, which is typically a very positive sign for eventual approval."
Analysts Predict Approval Within Weeks
The recent flurry of activity has led prominent ETF analysts to forecast an accelerated timeline for approval. Many believe the funds could begin trading on public exchanges in a matter of weeks.
James Seyffart, a well-known ETF analyst at Bloomberg, commented on the developments in a post on the social media platform X. He described the revisions as clear "signs of movement from issuers and the SEC."
Seyffart concluded his post by stating, "Solana ETFs likely coming to an exchange near you in coming days/weeks."
Expert Opinion
Nate Geraci, president of NovaDius Wealth, echoed this sentiment. He suggested the Solana funds could be approved within the next two weeks and noted that this development "bodes well for spot eth ETF staking," indicating potential positive implications for other digital asset products.
The Broader Crypto ETF Landscape
While a spot Solana ETF would be a first, investors already have some access to Solana through other exchange-traded products. Hashdex recently added SOL to its Hashdex Nasdaq Crypto Index US ETF, which also holds bitcoin and ether. Grayscale offers a similar mixed-crypto product that was approved by the SEC.
Furthermore, the market has already seen a successful launch of a staking-focused Solana fund. In July, REX-Osprey introduced a fund dedicated to staking Solana, which has since accumulated over $300 million in assets under management.
The regulatory environment also appears to be shifting. According to recent reports, the SEC has approved new listing standards for crypto-based ETFs on an "accelerated basis," a procedural change that could shorten the time it takes for new funds to receive a green light.
Notably absent from the list of Solana ETF applicants is BlackRock, the world's largest asset manager. The firm, which operates the largest spot Bitcoin and Ethereum ETFs, has not yet submitted a filing for a similar Solana product.
