Solana ETF Race Heats Up: Applicants File Updated S-1s as SEC Decision Looms

Solana''s ETF hopefuls just fired the latest shot in the crypto funds arms race. With updated S-1 filings hitting the SEC''s desk, the high-speed blockchain inches closer to mainstream legitimacy—and Wall Street''s favorite fee-generating vehicle.

The filings come as regulators play a dangerous game of chicken with crypto adoption. While the SEC drags its feet on spot Bitcoin ETF approvals, institutional money keeps finding backdoor routes into digital assets. Solana''s 65,000 TPS throughput might finally force their hand.

Behind the scenes: TradFi giants are quietly building Solana integrations while publicly wringing hands about ''volatility.'' Nothing shakes loose compliance departments faster than the scent of untapped management fees.

One cynical take: When BlackRock starts offering ''blockchain exposure'' mutual funds with 2% expense ratios, you''ll know they finally cracked the code on monetizing decentralization.

Seven ETF providers filed amended S-1 forms for solana exchange-traded funds with the U.S. Securities and Exchange Commission on Friday, suggesting approvals of the spot SOL-based funds may be near.

Staking Language Included In The Updated Filings

The proposed ETFs from investment firms, including 21Shares, Bitwise, Fidelity, Franklin Templeton, Grayscale, VanEck, and Canary Capital, seek to give US investors direct exposure to the price of Solana without them having to hold the altcoin directly. 

As per the revised filings, would-be issuers submitted updated S-1s, a registration statement required for a spot exchange-traded fund to gain SEC approval for public trading. 

The filings clarified language that WOULD enable them to stake their held SOL. The staking component would allow issuers to generate yield on the Solana held in their funds, allowing them to deliver higher returns to investors.

Friday’s moves come following a Tuesday report from Blockworks, which cited sources saying that the SEC had instructed prospective Solana ETF issuers to update their S-1 filings. Bloomberg senior ETF analyst Eric Balchunas said at the time that this signals the agency is more likely than before to approve some of these products, giving a timeline of two to four months for spot SOL ETFs to begin trading.

UPDATE: Multiple stories broke the news earlier this week that the SEC had reached out to issuers requesting them to submit updated documents for their Solana ETFs & to include staking. As of 5 PM EST we have 6 of the 7 hopeful Solana ETF issuers that have submitted those S-1''s pic.twitter.com/WqPI2jf2CW

The SEC has also reportedly indicated its openness to staking within the ETF structure.

On April 30, Bloomberg ETF analysts upped their estimated odds of the SEC approving a Solana ETF in 2025 to 90%, placing them at the top of their list. ETFs based on XRP follow closely with approval odds of around 85%.

The SEC has greenlighted spot Bitcoin and ethereum ETFs as well as hybrid Bitcoin-Ethereum funds. However, it has been hesitant to let issuers introduce products that track other altcoins beyond ETH, despite a rash of filings for funds that would track Avalanche, Dogecoin, XRP, and Official Trump. The agency recently postponed making a decision on several of those investment vehicles and asked for public comment.

Some pundits believe Solana has a better chance at securing the regulatory nod under the more leniet SEC leadership of Paul Atkins, especially following CME’s listing of SOL futures, which is not a necessary step in the ETF listing process but is usually considered as beneficial.

Solana currently ranks sixth on the crypto leaderboard, with a market cap of $77.4 billion. SOL is trading hands at around $146.74 at publication time, up a paltry 0.5% over the last 24 hours, according to crypto data provider CoinGecko.