The crypto market has its sights on the next big move in traditional finance: a Solana ETF. With Ethereum ETFs now approved and Bitcoin ETFs already trading on major stock exchanges, Solana is becoming the next candidate under the spotlight.
Recent filings and updates suggest growing momentum, but regulatory uncertainty still looms large. The price of SOL may fluctuate with speculation, yet a clear answer from the SEC remains distant.
The Current Status of Solana ETF Applications
A Solana ETF would allow investors to gain exposure to SOL through a regulated product, without needing to hold the token directly.
It would track the price of Solana and trade on stock exchanges, similar to the way Bitcoin and Ethereum ETFs operate. This opens the door for broader investor participation, especially from institutions and those who prefer traditional platforms.
On 13 June, seven major players either filed or updated their S-1 registration forms with the United States Securities and Exchange Commission.
These include Fidelity, 21Shares, VanEck, Franklin Templeton, Grayscale, Bitwise, and Canary Capital. VanEck was first to file in June 2024, and the wave of activity signals serious interest in bringing Solana ETFs to market.
Despite these efforts, ETF analyst James Seyffart urges caution. He does not expect approvals to happen anytime soon.
Seyffart recalled how the first Bitcoin ETF application was submitted in 2013 but was only approved in January 2024. That is over ten years of waiting and negotiation with the SEC.
He said, “I doubt we will see approval next week,” suggesting a lengthy process of back-and-forth communication is still ahead.
One key challenge is the regulatory classification of Solana. Unlike Bitcoin and Ethereum, which are now considered commodities, SOL has not been clearly identified by the SEC as either a commodity or a security.
If the SEC classifies it as a security, the approval process may be significantly delayed or even blocked. This uncertainty complicates the path forward for any ETF application involving SOL.
Political dynamics also play a role. The SEC’s attitude toward crypto can shift based on who holds power in Washington. A more crypto-friendly administration following the 2024 elections could improve the chances of approval, but for now, the outlook is unclear.
Another factor is market demand. Spot ETFs for Bitcoin and Ethereum only received approval after years of demonstrated institutional interest.
For Solana, the SEC may wait to see stronger demand signals before considering its approval a priority. If the SEC ends up rejecting the applications, issuers could challenge the decision in court, as Grayscale did for Bitcoin. This could extend the timeline by several more years.
If everything goes well and SOL is treated as a commodity, the earliest possible approval could arrive by late 2025 or 2026. However, most observers agree that delays are likely. Some believe Solana ETFs might not arrive until 2027 or beyond.
Staking Rewards and What Makes These Filings Different
One development stands out from the latest round of filings. Some Solana ETF proposals now include staking rewards.
This means investors would not only track SOL’s price but also earn passive income, similar to holding the asset directly in a staking wallet. It reflects a major innovation in ETF design and suggests the SEC may be opening up to more complex crypto mechanisms.
Among the filings, the Canary Marinade SOL ETF is the first to formally include staking as part of its structure.
It has selected Marinade Finance, a leading staking provider within the Solana ecosystem, as its exclusive partner. Investors in this ETF would benefit not only from potential gains in SOL’s price, but also from ongoing staking rewards, which function like interest earned on savings.
This signals a potential turning point. The SEC allowing staking within ETF products is a major change in approach.
It could reshape the future of crypto ETFs, making them more appealing by offering real yield, not just price exposure. It also brings the ETF experience closer to the reality of using crypto, where staking and earning rewards are core to network participation.
The implications go further. More staking through ETFs means more SOL is locked, improving network security and participation.
It strengthens Solana’s blockchain by encouraging longer-term holding and validator support. If successful, this model could influence how future Ethereum or even Bitcoin ETFs are structured.
It is also worth noting that the introduction of staking rewards adds value for investors. These products become more than just financial tracking tools.
They start to reflect the deeper economic features of decentralised networks. If staking becomes a common feature of ETFs, it could help bridge the gap between traditional finance and crypto-native incentives.
Conclusion
The Solana ETF story is only beginning, but it is already attracting major interest from institutional players. Filings from Fidelity, 21Shares, VanEck, and others show a clear intent to bring SOL to the same level of access as Bitcoin and Ethereum.
Yet regulatory uncertainty, political variables, and historical delays suggest that investors may need to be patient.
James Seyffart’s warning not to expect quick approval serves as a reality check. The SEC’s past approach to Bitcoin ETFs shows that even strong applications can take years to navigate.
Until SOL is classified and demand reaches institutional levels, final approval may remain out of reach.
At the same time, the inclusion of staking rewards in several proposals is a promising shift. It brings ETFs closer to the way crypto is used and hints at a more progressive attitude from regulators.
Whether it takes two years or longer, a Solana ETF with staking could mark a new era for crypto investment.
Editor: Lydicius