SEC Delays Decision on Solana Spot ETFs

Solona ETF Application Delayed

Bitwise and 21Shares filed a proposal for the Solana Spot ETF in January 2025, which was published in the Federal Register on February 18. The goal is to provide investors with direct access to the price of SOL through regulated financial products. The funds are proposed to list on the CBOE BZX Exchange under the Commodity-Based Trust Shares regulation, which is the same regulation that has been used to approve previous Bitcoin and Ethereum ETFs.

The SEC, on the other hand, decided to extend the review period by 60 days because it needed “sufficient time to consider the proposed rule changes and related issues.” The Securities Exchange Act requires a review period of 240 days. This is the final extension, following delays in March and May 2025. The SEC said the main reasons are:

Concerns about market integrity and investor safety. The SEC needs more time to review Solana’s market structure, such as liquidity, custody solutions, and market surveillance measures to prevent manipulation. It is still unclear whether Solana is a commodity or a security. This directly impacts how the SEC views Solana ETFs, especially given ongoing concerns about issues such as staking and concentration of control in the Solana ecosystem.

In July 2025, Bitwise, 21Shares, and others updated their filings to meet new SEC regulations, including better investor protections and tools for monitoring the market. However, these changes will take time to be reviewed.

The SEC typically takes this long to approve cryptocurrency ETFs. The agency has been careful to balance financial innovation with investor protection, which is why the Bitcoin and Ethereum ETFs had to wait several times before being approved in 2024.

Direct Impact on Solana

SOL prices fell slightly following the announcement, but analysts believe this is just a short-term reaction to pressure from the broader market. If the SEC signals a positive outcome, SOL could rebound to $200 if institutional interest in the Solana ETF and CME Group futures remains high.

Grayscale, Fidelity, ProShares and Canary Funds are also awaiting a decision on the Solana ETF, along with Bitwise and 21Shares. BlackRock, the world’s largest asset manager, has also said it has no plans to launch a Solana ETF, which focuses on Bitcoin and Ethereum. This shows that asset managers are using different strategies.

The delay shows that the SEC is trying to find a balance between protecting investors and encouraging new ideas. The SEC is gradually opening up, but is still cautious about altcoins like Solana. They have approved the creation and redemption of in-kind cryptocurrency ETFs by July 2025 and options on Bitcoin ETFs.

The Solana ETF decision could pave the way for ETFs related to XRP, Dogecoin, Litecoin, and Cardano, which asset managers are also recommended to approve. Bloomberg said these ETFs would have approval rates of 85%, 80%, 90%, and 75%, respectively, meaning the crypto ETF market could grow.

Conclude

The SEC’s delay of its decision on the Solana Spot ETFs from Bitwise, 21Shares, Canary Capital, and Marinade Finance to October 16, 2025 is a prudent but not unexpected move given the complex regulatory landscape of the cryptocurrency market. While it may cause some short-term volatility in the SOL price, the move gives issuers an opportunity to complete their filings and gain the SEC’s confidence.

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