The U.S. Securities and Exchange Commission (SEC) has recently sent out a key signal that could accelerate the approval process for the Solana ETF. According to Blockworks citing informed sources, the SEC recently notified several asset management firms to submit updated Solana ETF registration documents (Form S-1) within 7 days. The SEC specifically requested revisions concerning the terms of "in-kind redemptions" and the "staking mechanism," and hinted at the possibility of allowing the Solana ETF to include staking rewards functionality. This development has been interpreted by the market as a shift towards a more positive regulatory stance. One insider estimates that these updates could enable the Solana ETF to be approved within three to five weeks.

Following the news, SOL's price surged by 5% to above USD 165 in the short term, and as of the time of writing, it has retraced to around USD 163.6. The core revisions requested by the SEC mainly focus on two aspects: the language regarding in-kind redemptions and how the issuer will handle staking.

In-kind redemptions mean that ETF shareholders can choose to receive an equivalent amount of SOL tokens directly when redeeming fund shares rather than cash, improving tax efficiency and operational flexibility. The staking mechanism allows investors to participate in network validation through staking tokens and earn rewards. If allowed to be included in the ETF, it would enhance the attractiveness of the SOL ETF.

Institutions applying for this product include Fidelity, VanEck, Grayscale, among others. Grayscale plans to convert its existing SOL trust product into a spot ETF, replicating its successful path with Bitcoin and Ethereum ETFs. The CME exchange launched Solana futures in February 2024, further strengthening expectations.

The optimistic approval timeline is expected as early as July. Bloomberg senior ETF analyst James Seyffart also holds a positive view, believing the SEC may prioritize applications for Solana and staking ETFs. In April this year, Bloomberg analyst Eric Balchunas increased the probability of SOL ETF approval from 70% to 90%.

Regarding short-term trends, referencing the approximately 60% price increase of BTC after Bitcoin ETF approval, if Solana replicates this rise, the price could challenge the USD 250–300 range, but caution is advised. Technically, SOL broke through the USD 154 resistance level with strengthened buying power, indicating further upward potential. In the long term, the 30-day and annual moving averages show that the recent gains have not yet reversed the bearish structure, with resistance levels around USD 181, 187, and 194.