Introduction

In a significant development for Solana, the U.S. Securities and Exchange Commission (SEC) has officially recognized Grayscale’s revised application for a spot Solana exchange-traded fund (ETF). This move marks a notable shift, especially considering that previous attempts to file for Solana ETFs were rejected under the leadership of SEC Chair Gary Gensler.

SEC’s Acknowledgment of Grayscale’s Application

On February 6, the SEC formally acknowledged Grayscale’s amended application for a spot Solana (SOL) ETF. This recognition is crucial because earlier refusals stemmed from the SEC’s classification of Solana products as commodity trust shares, which limited their eligibility for ETF consideration.

Background on Previous Rejections

Finance lawyer Scott Johnsson highlighted that the SEC’s past rejections were based on misclassifications of Solana. Bloomberg analyst James Seyffart supported this, noting that the SEC’s Division of Enforcement categorizes Solana as a security, complicating its eligibility for a commodities ETF framework.

Uncertain Timeline for Approval

The timeline for the potential approval of the Solana ETF remains unclear, with experts offering varying predictions:

• Nate Geraci, President of ETF Store, suggested that approval could occur by the end of next year, citing the SEC’s recent engagement with issuers as a positive sign.
• James Seyffart indicated that the process might extend into 2026, emphasizing that the SEC typically requires 240 to 260 days to review such filings.

Surge in Crypto ETF Filings

This acknowledgment comes amid a surge of crypto ETF filings submitted to the SEC in recent weeks. Major issuers, including 21Shares, Bitwise, VanEck, and Canary Capital, are actively pursuing listings for spot Solana ETFs. The Cboe BZX Exchange has been instrumental in refiling 19b-4 forms on their behalf as of January 28.

Other Notable Crypto ETF Applications

Beyond Solana, the SEC has also recognized several other crypto-related ETF applications:

• Grayscale has filed for a Litecoin (LTC) ETF.
• BlackRock proposed allowing in-kind creations and redemptions for its iShares Bitcoin ETF.
• The Cboe BZX Exchange has filed forms for various issuers, including Canary Capital, WisdomTree, 21Shares, and Bitwise, to list a spot Ripple (XRP) ETF.
• Additionally, Bitwise has proposed a spot Dogecoin (DOGE) ETF, adding to the growing roster of crypto investment products seeking approval.

Conclusion

The SEC’s acknowledgment of Grayscale’s Solana ETF application represents a pivotal moment for the cryptocurrency. While the timeline for approval remains uncertain, the recent surge in ETF filings signals a growing interest in the crypto space. As issuers continue to navigate regulatory landscapes, the potential approval of Solana ETFs could pave the way for broader institutional adoption of cryptocurrencies.

Stay tuned for further updates as the situation unfolds, and consider the implications of these developments for your investment strategy in the evolving crypto market.