Regulator SEC Delays Final Solana ETF Decision to October 16 Following 60-Day Maximum Extension
The U.S. Securities and Exchange Commission (SEC) has extended its decision on Solana ETF proposals from Bitwise and 21Shares, citing the need for a thorough review of potential market manipulation risks, the adequacy of surveillance-sharing agreements, and the classification of Solana as a commodity or security 13.
The SEC has invoked its maximum 60-day extension authority, pushing the decision to October 16, 2025 1. This delay follows a cautious and patterned review process similar to previous Bitcoin and Ethereum ETF applications, with the SEC focusing on transparency, regulatory compliance, investor protection, and market integrity 13.
The SEC's decision on these Solana ETF proposals could have significant implications for the cryptocurrency market. An approval could potentially set an important precedent, clearing the way for other altcoin ETFs from firms like ProShares, Grayscale, and VanEck, thereby advancing institutional adoption of a wider range of digital assets beyond Bitcoin and Ethereum 25.
On the other hand, a rejection could signal stricter regulatory scrutiny for altcoin ETFs, potentially reinforcing barriers to market entry and slowing the expansion of institutional crypto investments involving altcoins 4. The market reaction has been mixed, with Solana-linked tokens experiencing volatility amid the ongoing uncertainty, but institutional interest remains strong due to advancing custody solutions and related futures markets 2.
Two other Solana ETF applications from Canary Funds and Marinade Finance are also on hold 1. Both Bitwise and 21Shares plan to leverage the Commodity-Based Trust Share framework, similar to the structure used by approved Bitcoin and Ethereum spot ETFs 1. Industry analysts have termed Solana a possible bellwether, suggesting that an SEC release could put an Albion-like green light on the filings of issuers ProShares, Grayscale, and VanEck 1.
If approved, Solana ETFs would provide regulated exposure to Solana's native token (SOL), allowing traditional investors to participate without directly holding the asset 1. The SEC's orders also cite the need for "sufficient time to consider" proposed rule changes related to Commodity-Based Trust Shares 1. The SEC's decision affects proposals from 21Shares and Bitwise to list Solana ETFs on the Cboe BZX Exchange 1.
Regulatory uncertainty over Solana's classification still lingers 1. Institutional interest in Solana continues to rise, with custody solutions, liquidity depth, and futures market development providing tools for major players to hedge and manage exposure 1. Meme coins focused on Solana have experienced significant drops, with BONK, Chill House, and MLG seeing double-digit declines 1.
In summary, the SEC's postponed decision is critical not only for Bitwise and 21Shares but also as a potential watershed moment for how U.S. regulators will treat altcoin ETFs. The outcome could reshape the next phase of crypto investment products and influence how other altcoin ETFs are evaluated and approved 14.
- The SEC's decision on the Solana ETF proposals from Bitwise and 21Shares, initially due on August 31, 2022, has been extended to October 16, 2025, due to thorough review of potential market manipulation risks, adequate surveillance-sharing agreements, and Solana's classification as a commodity or security.
- If approved, Solana ETFs would offer regulated exposure to Solana's native token (SOL), enabling traditional investors to partake without directly holding the asset.
- An approval for Solana ETFs could potentially set an important precedent, leading the way for other altcoin ETFs from ProShares, Grayscale, and VanEck, advancing institutional adoption of a wider range of digital assets beyond Bitcoin and Ethereum.
- A rejection could signal stricter regulatory scrutiny for altcoin ETFs, potentially reinforcing barriers to market entry and slowing the expansion of institutional crypto investments involving altcoins.
- The SEC is focusing on transparency, regulatory compliance, investor protection, and market integrity when reviewing Solana ETF proposals, similar to previous Bitcoin and Ethereum ETF applications.
- Institutional interest in Solana continues to increase with custody solutions, liquidity depth, and futures market development providing tools for major players to hedge and manage exposure.
- The SEC's concerns include the adequacy of surveillance-sharing agreements and the classification of Solana as a commodity or security, as well as proposed rule changes related to Commodity-Based Trust Shares.
- Meme coins focused on Solana have experienced significant drops, with BONK, Chill House, and MLG seeing double-digit declines amid the ongoing uncertainty.
