SEC Kicks Solana ETF Can Down the Road—Wall Street’s Favorite Delay Tactic

Regulators hit pause on the hotly anticipated Solana ETF, triggering yet another round of bureaucratic foot-dragging. The SEC’s latest move? Demanding public input instead of making an actual decision—because nothing says ’progress’ like kicking the ball to retail investors.

Here’s the playbook: stall, consult, repeat. While crypto markets churn out innovation at breakneck speed, Washington’s favorite game remains ’regulatory limbo.’ Solana joins Bitcoin and Ethereum in ETF purgatory—where applications go to gather dust.

Bonus jab: At this rate, the SEC will approve a Solana ETF right after Wall Street figures out how to monetize FOMO.

TLDR

• SEC Delays Solana ETF Decision
• 21Shares Solana ETF Under Scrutiny
• Bitwise ETF Faces Regulatory Concerns
• Public Input Requested by SEC
• SEC Broadens Crypto ETF Oversight

The U.S. Securities and Exchange Commission has extended its review of two proposed solana exchange-traded funds. The delay affects applications from 21Shares and Bitwise, seeking to list SOL-based ETFs. The SEC has opened a comment period to gather public feedback on the proposals before making a final decision.

21Shares Core Solana ETF Faces Regulatory Scrutiny

The SEC has launched proceedings to examine the 21Shares Core Solana ETF under its commodity-based trust rules. The fund aims to track Solana’s price using the CME CF Solana-Dollar Reference Rate. Its assets will include only SOL, cash, and equivalents, and the trust will issue shares in blocks of 10,000.

#Solana ETF News: @Cboe BZX Exchange files rule change proposal to list shares of Bitwise @BitwiseInvest #Solana ETF under BZX Rule 14.11(e)(4), Commodity-Based Trust Shareshttps://t.co/JV79PUhWwj pic.twitter.com/PADHnpKrdy

— MartyParty (@martypartymusic) May 19, 2025

The Commission seeks clarity on whether the ETF’s design prevents fraud and manipulation under Section 6(b)(5) of the Exchange Act. Additionally, the SEC wants detailed input on the trust’s pricing methodology and investor protection measures. It also questions whether the fund introduces novel risks not seen in prior crypto ETF applications.

Furthermore, the agency encourages stakeholders to submit data, opinions, or arguments regarding the listing’s compliance with existing regulations. The review will help determine if the proposed ETF maintains market integrity and protects investors. While no decision has been reached, the SEC’s process aims to ensure transparency and fairness.

Bitwise Solana ETF Also Under SEC Review

Bitwise’s proposed Solana ETF will also undergo extended review as the SEC continues its cautious approach to crypto-linked products. The fund structure mirrors the 21Shares model by directly holding SOL and referencing the CME pricing index. The shares will be valued daily and redeemed in cash through authorized participants.

However, the SEC expressed concern about whether the exchange listing the ETF can effectively monitor and prevent market manipulation. The Commission will evaluate the exchange’s surveillance mechanisms and ability to respond to irregularities. It also seeks public input on whether the ETF framework aligns with investor protection standards.

In response to the proceedings, Bitwise and market participants must now provide supporting data to address the Commission’s concerns. The review process allows for broader public engagement on the ETF’s potential impact. This ensures the Commission can fully assess any market or legal risks before approving the product.

Public Comments Invited as SEC Reviews Broader Crypto ETF Landscape

The SEC’s decision to seek public comment reflects its broader shift toward transparency in crypto market oversight. The Commission has also requested feedback on whether the proposed rule changes uphold the public interest. Comments will be accepted in writing, and oral presentations may be considered under specific rules.

The agency evaluates several crypto ETF proposals linked to XRP and Dogecoin. Multiple firms such as Grayscale, ProShares, and Canary seek to launch SOL-based ETFs. While no timeline has been provided, the ongoing feedback period extends the decision window.

Chair Paul Atkins outlined a new regulatory vision during a recent crypto roundtable, signaling a shift from prior enforcement-heavy tactics. Under the new leadership, the Commission has dismissed several lawsuits against crypto firms and emphasized collaboration. This latest MOVE underscores its effort to involve the public in shaping crypto policy.