Many Solana (SOL) ETF applications are currently being evaluated by the Securities and Exchange Commission (SEC), a step that experts see as a change from the way the agency has previously viewed such products. Alongside similar files from VanEck, Bitwise, and 21Shares, Canary Capital’s Solana Trust joined an expanding list of proposed ETFs on Tuesday that are requesting public comment in an effort to introduce SOL investing to Wall Street. The move comes after the SEC acknowledged Grayscale’s Solana ETF filing last week, which might serve as a signpost for other proposals.
Solana Takes First Step Towards Spot Solana ETFs
In a regulatory filing on February 11, Tuesday, the Securities and Exchange Commission (SEC) has opened a public comment period for the ‘Solana Trusts’, a proposed ETF to make SOL investing into mainstream financial institutions.
However, the proposal is under review, with the regulator suggested to declare an initial decision within 3 weeks. The proposal may approve, deny, or extend the deadline for further consideration. While the exact timing remains uncertain, cryptocurrency analysts remain optimistic that Solana and other altcoins will secure ETF approvals in the near future.
Chris Chung, the founder of the Solana swap platform Tita, stated that the Securities and Exchange Commission (SEC) had made a significant about-turn regarding the Solana ETF, going from refusing to even consider such an investment product to acknowledging Grayscale’s amended SOL ETF application. He added that there was a good chance this would turn out to be a historic day for Solana, similar to how January 10, 2024, had been a historic day for Bitcoin.
Grayscale has proposed Solana ETF previously, which was acknowledged by the SEC earlier this month, putting its review timeline ahead of Canary’s. According to analysts, the result of Grayscale represents a potential indicator of how the SEC will manage other Solana ETF applications.
Franklin Templeton, a massive asset management company that manages $1.68 trillion in assets, has entered the race by registering the Franklin Solana Trust business in Delaware. Institutional investors would have a regulated means to get exposure to Solana, a blockchain known for its fast transactions and monolithic construction if Franklin Templeton’s Solana ETF is approved.
A significant step toward wider adoption of altcoin ETFs and a possible extension of institutional access to the cryptocurrency market is the SEC’s recognition of several Solana ETF files.
How Trump’s Policies Could Boost Crypto ETFs?
Concerns about investor protection kept the SEC from allowing Bitcoin ETFs for years. This was altered last year, though, when the SEC authorized Bitcoin and Ether ETFs, paving the way for increased institutional and retail involvement. Since then, companies have applied for ETFs that are connected to other cryptocurrencies, such as XRP and Solana, but these proposals are still being reviewed.
With the SEC giving NYSE area expedited clearance to list and trade shares of the hybrid fund, Bitwise just obtained initial approval for an ETF that tracks both Bitcoin and Ether. The regulatory climate has also been impacted by changes in leadership under President Donald Trump. Both interim CFTC CHian Caroline Pham and acting SEC Chair Mark Uyeda have advocated for more transparent regulations and expressed pro-crypto sentiments.
Applications for Solana ETFs were denied by the previous SEC administration because they were incorrectly classified as securities rather than commodity trust shares. Since shares of commodity trusts usually track tangible assets like gold rather than virtual currencies, this led to repeated denials.
Crypto ETF filings increased after SEC chair Gary Gensler resigned. According to Eric Balchunas, a Bloomberg analyst, 33 additional applications were submitted in a matter of days, and it is anticipated that 50 will be submitted soon.
Since Donald Trump joined office last month, the U.S. government has transitioned toward a more digital currency-friendly stance, increasing optimism for expanded ETF approvals.
