Canary Capital Demands SOL ETF Staking—SEC Drags Feet Amid Crypto Boom

Wall Street’s latest crypto gambit hits a regulatory wall. Canary Capital—never one to miss a yield-chasing opportunity—is pushing hard for a staking-enabled SOL ETF. But the SEC, in classic fashion, is stuck in deliberation mode.

Why the hold-up? Insiders whisper the agency still treats crypto like a Wild West sideshow. Meanwhile, Solana’s ecosystem keeps humming, defying the naysayers.

Funny how regulators move at blockchain speed... until actual blockchain innovation knocks.

SEC to punt SOL ETF staking? 

Although the SEC’s decision deadline for Canary Capital’s previous SOL ETF application was in early June, the regulator may reject the staking request. 

When asked whether the agency WOULD approve it in June, Bloomberg ETF analyst James Seyffart stated,

“Unlikely, particularly with staking. SEC isn’t ready for staking in the ETF Grantor Trust wrapper … at least not yet.”

Despite recent roundtable discussions between the SEC’s crypto Task Force and stakeholders on ETF staking, tokenization, and other issues, recent requests for spot ETH ETF by Bitwise and other issuers have been delayed.

However, experts were hopeful that the SEC greenlight on altcoin ETFs may be likely from July or October. 

That said, SOL’s mid-May cool-off was over, and it was ready to extend the Q2 recovery.

Both spot CVD (Cumulative Volume Delta) and Open Interest (OI) rates declined from the 15 of May, reflecting a dip in spot market demand and speculative interest in derivative markets. 

Source: Coinalyze

But spot CVD stabilized and slightly rebounded, suggesting spot market bidding was back. But was it enough to crack the $180 overhead hurdle?

The $180 level has been a key resistance in 2024 and early 2025, and doubled as the 200-day SMA (Simple Moving Average). 

Source: SOL/USDT, TradingView

Clearing the obstacle would allow bulls to target $220 — A potential +23% gain if hit.

Besides, there was relatively low SOL profit-taking, and the market was not overheated per the Glassnode Profitability Map. This could boost the odds of cracking the $180 resistance.

Source: Glassnode