The Securities and Exchange Commission (SEC) has taken a significant step toward approving spot Solana exchange-traded funds (ETFs) by requesting that issuers of proposed Solana ETFs update their S-1 filings. This move, reported by Blockworks, suggests that approvals could be on the horizon, potentially within the next two to four months, according to Bloomberg senior ETF analyst Eric Balchunas.
A Step Closer to Spot Solana ETF Approval
Following the SEC’s landmark approval of spot Bitcoin and Ether ETFs last year, numerous companies have filed proposals for funds tracking other cryptocurrencies, including Solana (SOL) and XRP. However, despite analysts predicting “high odds” of approval for altcoin-based ETFs, the SEC has yet to greenlight any of these products—until now, it seems, progress is being made.
Just last month, the SEC delayed its decision-making process for spot Solana ETFs from issuers like Bitwise and 21Shares. The recent request for updated filings signals renewed momentum, with Balchunas estimating that approvals could come as early as July or extend into October, depending on regulatory timelines.
“We think the spot Solana and XRP—and well, Ether’s already out—but we think the others are going to come out probably in two months,” Balchunas told The Block. “Some of the deadlines are coming up in October. We think that in July, there could be a basket with Solana, XRP, Ether, and Bitcoin. It’s all spot.”
Balchunas added that issuers are exploring “clever ways” to launch their products ahead of competitors, as being first to market could provide a significant advantage.
Market Reaction to Potential Approval
The news of a potential timeline for spot Solana ETF approvals triggered an immediate reaction in the cryptocurrency market. Solana’s price surged 4%, climbing from approximately $158 to $164, according to The Block’s SOL price page.
Companies with exposure to Solana also saw significant gains. DeFi Development Corp. stock rose 17%, jumping from around $23 to $27, while SOL Strategies shares climbed 8.4%, based on Nasdaq data as of June 10.
Why Solana ETFs Matter
The potential approval of spot Solana ETFs represents a major milestone for the cryptocurrency ecosystem. Unlike futures-based ETFs, which track derivatives rather than the underlying asset, spot ETFs directly hold the cryptocurrency, offering investors more transparency and closer exposure to the asset’s performance.
For Solana , this development could unlock new levels of institutional adoption. Known for its high-speed transactions and low fees, Solana has become a popular choice for decentralized applications (dApps) and non-fungible tokens (NFTs). A spot ETF could attract a broader range of investors, including those who prefer regulated investment vehicles over direct crypto ownership.
Analyst Predictions and Market Impact
While Balchunas remains optimistic about the timeline, he tempered expectations regarding the scale of adoption compared to Bitcoin and Ether.
“At some point in the next four months, there’s going to be an avalanche of spot products, and they’re going to have the same effect—except it’s going to be on a much smaller scale,” Balchunas said. “Solana, it’d be lucky to get a whole billion—same with XRP.”
Despite the smaller scale, the approval of spot Solana ETFs could still have a meaningful impact on the broader market. It could pave the way for other altcoin ETFs, further legitimizing cryptocurrencies as investable assets.
First-to-Market Advantage
The race to launch the first spot Solana ETF is heating up, with issuers vying for the coveted first-to-market position. Being the first to offer a Solana ETF could provide a competitive edge, attracting early investor interest and establishing brand recognition in this emerging space.
Balchunas noted that issuers are employing creative strategies to expedite their launches, underscoring the high stakes involved.
Final Thoughts
The SEC’s request for updated filings marks a critical step toward the potential approval of spot Solana ETFs, with analysts predicting approvals within the next two to four months. While the scale of adoption may not match that of Bitcoin or Ether, the introduction of Solana ETFs could significantly boost institutional interest and validate altcoins as viable investment options.
As the market reacts positively to the news, all eyes are on the Solana ETF approval upcoming decisions. For Solana and its supporters, this could be the beginning of a new chapter in mainstream adoption.
