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SEC Requires Issuers to Update Filings
Sources revealed that the SEC has requested issuers to update the language in their documents concerning “in-kind redemption” and how to handle Solana staking. Two sources indicated that the SEC seems open to the structure of “incorporating staking into a Solana ETF.” One source estimated that these revisions could lead to the approval of the Solana ETF within three to five weeks.
Bloomberg intelligence analyst James Seyffart expressed optimism in a media interview, stating that he expects approval this year, possibly as soon as July.
In a memo this week, James Seyffart wrote:
“We believe that the SEC may now process the 19b-4 filing for Solana and staking-type ETFs earlier than originally planned. Issuers and industry participants have likely already collaborated with the SEC and its cryptocurrency project team to discuss the rules, but the SEC’s final decision deadline remains in October.”
Currently, several institutions are competing to launch Solana ETFs, including Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale.
Last month, the SEC postponed its decision on Grayscale’s Solana ETF, stating that it had not reached any conclusions on the 19b-4 filing.
CME and Market Sentiment
In February of this year, CME launched Solana futures products, which are widely regarded as a key step favorable to the SOL spot ETF applications. Prior to the approval of BTC and ETH ETFs, futures markets were also launched on CME. Currently, there are several Solana futures ETFs listed in the market, including two products issued by Volatility Shares.
James Seyffart believes that both Solana and XRP ETFs already have derivative-type ETFs as precedents, making the approval of spot ETFs for these two cryptocurrencies merely a matter of time.
“If the SEC ultimately does not approve a spot XRP or Solana ETF, I would be extremely surprised.”
