Written by: Nancy, PANews
On June 11, the U.S. SEC requested potential Solana spot ETF issuers to update their S-1 application documents, marking the entry of Solana ETFs into the substantive review phase and signaling a positive regulatory stance. The SEC focused on the physical redemption mechanism and staking mechanism, requiring issuers to provide clear and lawful operational guidelines. Solana's staking rate is 65.44%, with a staking yield of 7.56%, more than double that of Ethereum. Since Grayscale submitted its Solana spot ETF application in 2024, the approval process has entered a substantive phase. Despite previous delays, the regulatory attitude has shifted towards refining rule details.
Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale have all submitted applications. The price of Solana tokens has broadly increased driven by the news, with the market expecting approval as early as July and an approval probability as high as 90%.
Solana is the third crypto asset to apply for a spot ETF after Bitcoin and Ethereum. While futures ETFs have been approved, internationally, the Toronto Stock Exchange in Canada has already launched a Solana spot ETF supporting staking. The SEC still holds potential controversy over Solana's securities classification, but the overall approval outlook is optimistic.

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 Landing as early as July.
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Written by: Nancy, PANews
As the Solana ecosystem fell into a trough of sentiment, news of an ETF reignited market optimism. On June 11, the U.S. SEC requested potential Solana spot ETF issuers to update their S-1 filing documents. This move was seen by the market as a turning point marking the start of substantive review of the Solana ETF, signaling a positive regulatory stance. Driven by this, market expectations for official approval in July rapidly intensified, leading to a broad rally across the Solana ecosystem.
<h2>Solana Spot ETF Approval Accelerates as SEC Focuses on Physical Redemption and Staking Mechanisms</h2>
According to Blockworks, several insiders revealed that the SEC has notified multiple issuers planning to launch Solana spot ETFs to submit updated S-1 registration statement documents within the next week. This means several prospective Solana spot ETF issuers have been asked to submit updated S-1 filings within a week.
Sources indicated the SEC will provide review feedback within 30 days after the S-1 submission. The updates will mainly focus on modifications to the physical redemption language and handling of the staking mechanism, which have become core concerns in the approval process for crypto spot ETFs.
In the design of crypto asset ETFs, physical redemption means investors can exchange ETF shares for the underlying asset (such as SOL), rather than cash. During its review of the S-1 filing, the SEC will scrutinize how the issuer plans to implement physical redemption, how asset value is calculated, and whether partial or full redemption in cash is supported. The descriptions must be clear, legal, compliant, and operational. This mechanism directly impacts ETF market transparency, liquidity, and arbitrage efficiency, and its compliance is a key factor for the SEC in determining the suitability of the ETF for retail and institutional investors.
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The staking mechanism is another focal point for the market. Staking is a native asset appreciation method for PoS public chains like Solana, providing on-chain yields for holders. According to Staking Rewards data as of June 11, Solana’s staking rate stands at 65.44%, with a staking yield of 7.56%, more than double Ethereum’s 3.13%. Previously, the SEC repeatedly avoided staking-related clauses in Ethereum ETF approvals due to concerns over securities income attributes. However, during May’s negotiations with BlackRock on an Ethereum spot ETF, the SEC showed signs of loosening, beginning to accept staking under specific conditions. Insiders now reveal the SEC maintains an open attitude towards including the staking mechanism in Solana spot ETFs, requiring issuers to provide sufficient legal clarity and implementation details.
Since Grayscale first submitted the 19b-4 filing for a Solana spot ETF in 2024 and it was formally accepted by the SEC in February this year, the Solana ETF has entered substantive regulatory proceedings. Although the SEC again announced delays at the end of May for some Solana ETF approvals citing "more time needed to evaluate legal and policy issues," this latest S-1 revision directive signals an important shift: regulators no longer reject the feasibility of Solana ETFs and have moved from a veto stance to rule-making and detailed refinement.
To date, Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale have all filed applications for Solana spot ETFs.
Following this news, CoinGecko data shows a broad rise in Solana ecosystem tokens, with SOL prices reaching a new high for the month. Previously, participation in Solana had dropped significantly since the start of the year due to the Pump.fun token issuance siphoning effect and liquidity incentives diverting to other chains.
<h2>Possibly Landing as Early as July with Approval Probability as High as 90%</h2>
After the successful launch of Bitcoin and Ethereum spot ETFs, market attention is quickly turning to the next potential crypto spot ETF targets.
Solana is the third crypto asset applying for a spot ETF following Bitcoin and Ethereum. According to Blockworks citing insider sources, based on the latest filing update pace, Solana spot ETFs are expected to be approved within the next 3 to 5 weeks, potentially as early as July, earlier than the previously widely expected late second half of the year.
James Seyffart, a Bloomberg ETF analyst, in his latest forecast stated that related products could be approved this year, possibly as early as July. He said, "We believe the SEC may now process the 19b-4 filings related to Solana and staking ETFs earlier than originally planned. Issuers and industry participants have likely been working with the SEC and its crypto asset working group to formulate rules, but the SEC's final deadline for decisions on these filings remains October this year."
Solana is considered to have met the key prerequisites for approval. James Seyffart added that Solana and XRP's ETF applications currently have approved derivatives ETFs, which paves the way for the approval of spot ETFs.
In fact, in March this year, Volatility Shares launched two Solana futures ETFs, making it the first L1 public chain project to receive approval for a U.S. futures ETF after Bitcoin and Ethereum. This is regarded as an important indicator for assessing the maturity of the spot ETF market. This path closely mirrors the progression of Bitcoin and Ethereum spot ETFs, where futures ETFs "pave the way" before promoting the launch of spot products.
Outside the U.S., the Toronto Stock Exchange in Canada launched four Solana spot ETFs in April, supporting staking features. This product innovation not only demonstrates appeal to institutional investors but also indirectly pressures the SEC from an international regulatory perspective.
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In James Seyffart's latest forecast on the approval probabilities of crypto spot ETFs, Solana and Litecoin are in the top tier. Among them, Litecoin and Solana have an approval probability of 90%; XRP has 85%; Dogecoin and HBAR are expected to have an 80% approval probability; Cardano, Polkadot, and Avalanche are expected to have 75%; and SUI is expected to have 60%.
Although Solana has met most of the key conditions for U.S. spot ETF approval, the SEC previously listed SOL as an "unregistered security" in lawsuits against Coinbase and Binance. Although some of these lawsuits have been paused or withdrawn, the securities label has not been officially clarified or adjudicated, which still constitutes a potential obstacle.
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Solana Spot ETF Makes Substantive Progress Again, SEC Focuses on Evaluating Staking and Redemption Mechanisms

Solana Spot ETF Makes Substantive Progress Again, SEC Focuses on Evaluating Staking and Redemption Mechanisms