SEC Pushes Back Solana ETF Approval, Citing Staking Details Missing

Solana ETF Faces Further Delay as SEC Demands Staking, Trust Structure Updates Before October Decision

The long-anticipated Solana spot exchange-traded fund (ETF) has hit another delay as the U.S. Securities and Exchange Commission (SEC) has formally requested additional details from applicants regarding staking mechanisms, subscription processes, redemptions, and trust structures. While the SEC's official deadline for a decision remains October 10, 2025, applicants have been asked to submit revised filings before the end of July, signaling cautious progress for the crypto investment vehicle.

SEC Requests Staking and Redemption Details From Applicants

According to multiple sources familiar with the matter, the SEC’s latest correspondence with ETF applicants specifically highlighted the need for detailed procedures regarding how ETFs will handle crypto staking, where and how assets will be custodied, and how funds will process investor subscriptions and redemptions under current regulatory frameworks.

Source: X

The agency’s request arrives during a crucial period for the crypto industry as institutional demand for regulated crypto investment products grows, even as regulatory clarity remains elusive.

“The SEC is walking a fine line here. They want to ensure investor protection while acknowledging that the demand for these products is only increasing,” said crypto policy analyst Amelia Richards in an interview with ABC News.

Major Financial Firms Leading the Solana ETF Push

On June 13, a slate of leading asset managers, including Fidelity, Grayscale, Franklin Templeton, Bitwise, VanEck, Canary Capital, and 21Shares, filed or amended applications for Solana ETFs, each adding staking features within their proposals.

Staking, a key part of Solana’s proof-of-stake blockchain, allows holders to earn rewards while helping secure the network. Funds such as Bitwise and Canary indicated plans to stake their SOL holdings through Coinbase Custody, with staking rewards (paid in SOL or stablecoins) either reinvested into the fund or distributed to shareholders.

By incorporating staking, these ETFs could offer investors additional yield beyond simple exposure to SOL’s price, creating a unique offering in the competitive crypto ETF landscape.

Why the Timeline Matters for Investors

Even as these revised filings signal progress, analysts remain cautious about immediate approval. Bloomberg ETF analyst James Seyffart noted that while the SEC’s requests indicate engagement, the lack of a clear regulatory framework for digital asset ETFs remains a barrier.

“This is less about rejection and more about the absence of a defined path,” Seyffart stated. “Until the SEC sets out a concrete rulebook for digital asset ETFs, delays like these are inevitable.”

Despite the delays, some see the SEC’s willingness to request revisions as a positive indicator that the agency is considering approval, albeit under strict conditions.

Market Impact: Price Dip and Volume Spike

Following the news of the SEC’s additional requests, Solana’s price dropped by 2.3% within a single trading session, settling around $148.37. However, trading volume surged by 19% to $3.74 billion, reflecting continued investor interest and speculation surrounding the eventual approval of a Solana ETF.

Market observers noted that price fluctuations tied to regulatory updates are typical in the crypto sector, where investor sentiment often hinges on the regulatory environment and anticipated product launches.

First SOL Staking ETF Quietly Approved

In a surprising move, the SEC approved the REX-Osprey SOL Staking ETF (SSK) on July 2, marking the first U.S.-approved Solana ETF with staking functionality. This fund offers exposure to SOL’s price while participating in staking to generate an estimated annual yield of 7.3%.

The approval caught many off guard, with expectations of prolonged regulatory hurdles keeping most analysts cautious. Following the ETF’s launch, Solana’s price experienced a surge of 6% to 12%, peaking around $160, underscoring strong market appetite for regulated crypto products that offer both yield and price exposure.

Source: CoinMarketCap

“This is a signal that regulators are willing to work with the industry if certain conditions are met, and it could pave the way for additional crypto ETFs,” said digital asset strategist Clara Wu.

What Is a Staking ETF?

Unlike conventional ETFs that simply track the price of an underlying asset, staking ETFs allow funds to participate in blockchain networks and earn rewards, which can either be reinvested or distributed to investors, enhancing the fund’s yield profile.

The REX-Osprey ETF’s approval may encourage similar offerings across other proof-of-stake networks, including Ethereum and Cardano, as asset managers explore ways to combine passive income strategies with crypto exposure.

Broader Implications for Solana and the Crypto Industry

For Solana, continued interest in staking ETFs represents a validation of its network’s capabilities and its role within institutional portfolios. If additional ETFs gain approval, large institutional players may begin acquiring and staking significant amounts of SOL, potentially providing upward pressure on its price while further decentralizing the network’s security.

Industry stakeholders suggest that while delays are frustrating, they are part of a larger process toward mainstream crypto integration within regulated financial systems.

“The SEC’s demands reflect a thorough approach rather than obstructionism,” commented blockchain legal expert Julian Carter. “Every revision and clarification moves these products closer to compliance, which benefits both issuers and investors in the long term.”

Investors Should Prepare for Continued Volatility

The road to a Solana ETF is far from smooth, and further regulatory twists are likely. Investors should be prepared for continued volatility as developments unfold, especially as the SEC’s October 10 deadline approaches.

Meanwhile, early successes like the REX-Osprey staking ETF may inspire confidence, but widespread approval for multiple Solana ETFs will depend on how effectively asset managers address the SEC’s concerns regarding staking, custody, and investor protections.

Final Thoughts

While Solana ETF filings face delays due to SEC demands, the active engagement from regulators indicates progress rather than rejection. The push for staking-enabled ETFs aligns with broader trends in decentralized finance and yield generation, underscoring the evolving nature of crypto investment products.

Investors interested in Solana ETFs should closely monitor updates throughout July as firms submit revised filings and prepare for the SEC’s October decision. The outcome will not only influence Solana’s market trajectory but could set the stage for the future of staking ETFs across the broader crypto landscape.

Writer @Ellena

Ellena 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.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.