Solana ETFs Gain Traction as SEC Reviews Staking Filings

Solana ETFs Add Staking to SEC Filings: A Potential Game Changer for U.S. Crypto Investors

In a move that could reshape the future of cryptocurrency-based exchange-traded funds (ETFs) in the United States, seven prominent financial institutions have submitted or updated their S-1 filings with the U.S. Securities and Exchange Commission (SEC) to propose Solana ETFs that include staking as part of their investment strategy. The filings, submitted on June 13, 2025, by firms including Fidelity, 21Shares, Franklin Templeton, Grayscale, Bitwise, Canary Capital, and VanEck, signal growing interest in expanding the utility of crypto ETFs beyond mere price tracking.

Staking: The New Frontier in ETF Innovation

At the heart of these updated filings is the inclusion of staking—a mechanism that allows holders of Solana’s native token (SOL) to earn rewards for participating in the network’s security and operations. Staking has long been a feature accessible to individual crypto enthusiasts managing their own digital wallets, but its introduction to a regulated ETF product represents a new step in mainstream crypto adoption.

According to Bloomberg ETF analyst James Seyffart, all seven filings contain language referencing staking as part of the ETF’s underlying strategy. Bitwise and Canary Capital, for example, outlined plans to stake SOL held in dedicated trust accounts via Coinbase Custody. The staking rewards, which may be distributed as additional SOL tokens or converted into cash, would flow back to the trust—potentially enhancing the value of the ETF for investors.

Grayscale, another major player in the crypto investment space, has also proposed staking as part of its Solana ETF design. However, Grayscale introduced certain conditions, specifying that staking will only be activated if predefined criteria, referred to in the filing as a “Holding Condition,” are satisfied. Notably, Grayscale disclosed a management fee of 2.5%—higher than the industry average—but positioned the fee as justifiable given the potential for yield through staking rewards.

A Shift from Passive Tracking to Active Yield Generation

The concept of integrating staking into ETFs marks a fundamental shift in how crypto funds may operate in regulated markets. Traditional crypto ETFs, such as those approved for Bitcoin and Ethereum earlier in 2024, have focused exclusively on tracking spot prices. By contrast, Solana ETF proposals aim to combine price exposure with yield-generation, offering investors a more dynamic way to participate in the crypto economy.

“This is a significant leap forward in ETF design,” said Emma Carlton, senior crypto strategist at Global Market Insights. “We’re moving beyond simple price trackers toward investment vehicles that mirror the true utility of these blockchains. For Solana, that utility includes staking, which has been a core part of the ecosystem since its inception.”

Regulatory Hurdles Remain

Despite the optimism surrounding these filings, ETF experts caution that approval is not imminent. Seyffart emphasized that the SEC is likely to engage in multiple rounds of feedback and require substantial adjustments to the proposals before any potential approval is granted. “Just look at the history of Bitcoin ETFs,” Seyffart explained. “It took over a decade of filings, amendments, and discussions before the SEC approved spot Bitcoin ETFs in January 2024. The inclusion of staking introduces a new layer of complexity that the agency will need to fully understand and regulate.”

Indeed, staking was not a feature in prior Bitcoin or Ethereum ETF approvals, meaning that regulators will need to evaluate how staking rewards are handled, how they impact ETF valuations, and how investor protections can be ensured.

Industry observers believe that any decision on Solana ETFs could also influence future decisions on Ethereum ETFs with staking features, should issuers pursue that path. “There is a possibility that approvals for staking-enabled ETFs could come as part of a broader package addressing multiple assets,” Seyffart noted.

Market Reaction and SOL’s Price Movement

The news of the updated filings has added momentum to Solana’s recent price performance. As of the latest data, SOL was trading at $146.97, up 2.13% over the previous 24 hours. Analysts attribute part of this uptick to renewed investor interest following reports of a $628 million on-chain transfer of SOL—speculated to be linked to positioning ahead of potential ETF developments.

Source: CoinMarketCap

“The excitement surrounding these ETF filings shows how important regulated crypto products have become for institutional and retail investors alike,” said Laura Kim, portfolio manager at Galaxy Digital. “A Solana ETF with staking would allow investors to access both price exposure and yield in one product, without the technical headaches of managing private keys or delegating tokens themselves.”

A New Era for Crypto ETFs?

If approved, these Solana ETFs would mark the first time that staking has been integrated into a U.S. regulated fund structure. The implications could be profound, opening the door to a new generation of crypto investment products that mirror the functional benefits of blockchain participation. By including staking rewards in the ETF’s value proposition, issuers aim to offer investors a more comprehensive crypto investment experience.

“This is not just about Solana,” explained Dr. Alan Moore, professor of financial innovation at Stanford University. “It’s about setting a precedent for how crypto ETFs can evolve. If staking can be successfully integrated into regulated products, we could see similar developments for other proof-of-stake networks like Cardano, Polkadot, or even future iterations of Ethereum ETFs.”

Investor Considerations and Risks

While the potential benefits of staking-enabled ETFs are compelling, experts urge investors to carefully consider the associated risks. Staking introduces variables such as validator performance, slashing penalties (where staked tokens can be partially forfeited for network misbehavior), and the complexities of converting staking rewards into cash or reinvesting them efficiently.

Moreover, management fees on these products may be higher compared to traditional ETFs, reflecting the operational challenges of managing staked assets in a compliant and secure manner. “Investors will need to weigh the potential for yield against these additional costs and risks,” Moore added.

Final Thoughts

The inclusion of staking in Solana ETF proposals represents a bold step toward broadening the appeal and functionality of crypto investment products. While regulatory approval may still be months—or even years—away, the filings have already sparked important conversations about the future of digital asset funds.

For everyday investors, a staking-enabled ETF could provide an opportunity to earn passive income from Solana’s blockchain without the technical complexities of managing wallets or validators. As the SEC deliberates, the crypto community will be watching closely to see if these innovative products gain regulatory acceptance and pave the way for the next chapter in digital asset investing.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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