The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s spot Solana ETF application, marking the first time it has taken action on a Solana-based ETF proposal.
The SEC rejected Solana ETF filings for years, arguing that SOL is a security. Now, for the first time, an application has been officially considered. This does not guarantee approval, but it is a shift from its previous stance.
With a final decision due by October 11, analysts are watching closely to see if this signals a broader change in crypto ETF regulation.
SEC Acknowledges Grayscale’s Solana ETF Filing
The SEC’s history with Solana ETFs has been one of rejection. Under former Chair Gary Gensler, the regulator refused to review applications, claiming that Solana was a security rather than a commodity.
Source: SEC
This classification made it difficult for asset managers to introduce ETFs based on SOL, as securities-based ETFs require different regulatory approvals.
The SEC reinforced this position in lawsuits against Binance and Coinbase, where it alleged that both platforms traded unregistered securities, including Solana. This created an environment where any attempt to introduce a spot Solana ETF was immediately dismissed.
However, on February 6, 2025, the SEC formally acknowledged Grayscale’s filing, meaning it will review the application instead of ignoring it. This is a significant shift because it suggests that the regulator may be reconsidering its stance on Solana ETFs.
Bloomberg ETF analysts James Seyffart and Eric Balchunas both noted the importance of this step. Seyffart pointed out that previous Solana ETF filings were ignored, while Balchunas called this a small but important change.
The SEC’s decision to open a 21-day public comment period means it will now gather input from industry participants, investors, and financial institutions before making a final ruling. Once the comment period ends, the SEC must either approve, reject, or extend the review process.
This acknowledgement does not guarantee approval, but it confirms that the SEC is at least open to discussing a spot in Solana ETF, which is something that was not the case just a few months ago.
More Crypto ETF Applications Enter the Market
The SEC’s acknowledgement of Grayscale’s Solana ETF comes at a time when many asset managers are submitting new crypto ETF applications. In recent months, 21Shares, Bitwise, VanEck, and Canary Capital have all filed for spot Solana ETFs through the Cboe BZX Exchange.
Beyond Solana, Bitwise has also submitted a proposal for a spot Dogecoin ETF, while Grayscale has filed for a Litecoin ETF.
The SEC recently acknowledged Grayscale’s Litecoin ETF application, leading analysts to believe that Litecoin may be next in line for ETF approval after Bitcoin and Ethereum.
This wave of new ETF filings is partly due to a shift in leadership at the SEC. Acting Chair Mark Uyeda has taken a different approach to crypto regulation compared to his predecessor.
Recently, the SEC launched a crypto task force, led by Commissioner Hester Peirce, to clarify which cryptocurrencies should be classified as securities and which should not.
This effort could have a direct impact on how the SEC evaluates crypto ETFs, as many applications have been delayed due to uncertainty over asset classification. If the SEC adopts a clearer approach to crypto assets, more ETFs could gain approval in the future.
Political factors are also playing a role. With Donald Trump now in office, there is growing speculation that U.S. crypto regulations may become more favourable.
While this does not directly impact the SEC’s decisions, it has influenced market sentiment, with some experts predicting that more crypto ETFs could be approved under the new administration.
The next few months will be critical for the future of crypto ETFs, as the SEC will have to decide whether to approve, reject, or extend its review of multiple applications, including Grayscale’s Solana ETF.
How a Solana ETF Could Impact the Market
If a spot Solana ETF is approved, it would make it easier for institutional investors to gain exposure to SOL without needing to buy and store the cryptocurrency directly.
This could increase liquidity in the Solana market and bring in a new wave of investment from traditional financial institutions.
JPMorgan estimates that a Solana ETF could attract between $3 billion and $6 billion in net assets within its first year. Eric Balchunas, a Bloomberg ETF analyst, said that this estimate is realistic, given the strong demand for regulated crypto investment products.
Meanwhile, traders on Polymarket, a prediction market platform, currently place the odds of a spot Solana ETF being approved before July 31 at 39%. This suggests that investors are cautiously optimistic but still recognize that approval is far from certain.
One of the biggest hurdles for a Solana ETF approval remains the SEC’s ongoing classification of SOL as a security.
Even though the regulator has acknowledged Grayscale’s filing, it has not yet changed its stance on how Solana is categorized. If the SEC continues to treat Solana as a security, approval could still be a long and difficult process.
However, the fact that the SEC is now accepting public comments on the proposal suggests that it is at least willing to engage in discussions about how a Solana ETF could be structured. This is a departure from past years, where such applications were rejected outright.
Investors and asset managers will be watching closely to see how the SEC proceeds. The final decision on Grayscale’s ETF is expected in October, but the broader conversation about crypto ETFs is already shifting.
Conclusion
The SEC’s decision to acknowledge Grayscale’s Solana ETF application marks a change in approach, as previous filings were ignored or dismissed outright. While this does not guarantee approval, it does open the door to further discussions.
With more crypto ETF applications under review, the regulatory landscape for digital assets is evolving. The final decision on Grayscale’s Solana ETF is expected in October, and the SEC’s willingness to consider the application suggests that its approach to crypto ETFs may be changing.
If this trend continues, it could lead to more opportunities for investors and a stronger market for crypto-based financial products in the future.