The Securities and Exchange Commission has instructed investment managers seeking to launch Solana-based exchange-traded funds to refile their applications by July 31, according to sources familiar with the matter. The directive marks an acceleration of the regulatory timeline that could bring approvals months ahead of the formal October 10 deadline.
The move to compress the review process follows the recent launch of the REX-Osprey SOL and Staking ETF, which began trading last week under different regulatory provisions, creating pressure on the SEC to level the playing field for competing products.
The SEC's request for amended S-1 registration documents represents the agency's first direct communication with issuers since initial filings were submitted1. Regulators are seeking clarification on staking mechanisms and in-kind redemptions, according to a CoinDesk report citing unidentified sources2.
Asset managers including Grayscale, VanEck, Fidelity, Bitwise, 21Shares, and CoinShares have submitted applications for spot Solana ETFs through the Cboe BZX Exchange1. The compressed timeline suggests the SEC aims to avoid granting any single product a first-mover advantage, mirroring its approach to Bitcoin and Ethereum ETF approvals.
The regulatory urgency appears linked to the automatic approval of the REX-Osprey SOL and Staking ETF under the Investment Company Act of 19401. The fund, trading under ticker SSK, recorded approximately $33 million in volume and $12 million in inflows on its debut2.
"I think that the SEC has some pressure to approve these quicker than waiting all the way to October, especially with that Rex Shares product that got approved last week," one source told CoinDesk3. Market sentiment has shifted accordingly, with Polymarket bettors now pricing in a 99% probability of Solana ETF approval before year-end4.
The accelerated review process echoes the SEC's handling of spot Ethereum ETFs in 2024, when the agency moved more quickly than initially anticipated1. Bloomberg ETF analysts Eric Balchunas and James Seyffart have estimated approval odds at over 95% for 20251.
The development comes as the crypto ETF market continues expanding, with Bitcoin-linked funds approaching $50 billion in net inflows and Ethereum products nearing $4 billion2. Solana traded around $151 at the time of the Monday reports1.
The SEC's willingness to expedite the review process reflects growing institutional interest in cryptocurrency investment vehicles, though the agency maintains its October deadline for final decisions on all pending applications.
