The U.S. Securities and Exchange Commission (SEC) has postponed its decision on applications for spot Solana ETFs from 21Shares and Bitwise.
The decision disclosed in a regulatory filing comes as the commission initiates formal proceedings to judge those proposals.
The Commission announced that it is initiating proceedings to allow more time to assess whether the proposed rule change aligns with Section 6(b)(5) of the Act.
This section requires, among other provisions, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative practices and to protect investors and the public interest.
The SEC initially accepted both applications earlier this year. Bitwise first submitted its proposal in January 2025 via the BZX Exchange. The agency issued its first delay on March 11, and with this latest development, the review process has now moved into a more formal and detailed stage.
21Shares, which already operates spot Bitcoin and Ethereum ETFs, was one of the earliest companies to apply for a Solana-based ETF in America’s market. However, like its competitors, the company has been stymied by regulation, as the SEC continues to be wary of financial products based on crypto.
This delay is nothing out of the ordinary. The SEC also pushed off a decision on Grayscale’s proposed Solana ETF earlier this month, indicating the glacial pace of most digital asset ETF applications.
For their part, ETF experts remain unbothered by the latest delay. Bloomberg analysts James Seyffart and Eric Balchunas argue there’s still a good chance (70% in 2025) that there’s a Solana ETF approved in the U.S.
The rush isn’t limited to 21Shares and Bitwise. Heavyweights like VanEck and Franklin Templeton have also filed for Solana ETFs. This demand for Solana suggests strong institutional demand for regulated SOL exposure vehicles.
ETF products are also eyeing other altcoins like Litecoin and XRP. Litecoin ETF’s likely approval rates are around 90%, and XRP ETFs are at 85%. Dogecoin and Cardano ETFs follow closely, with approval probabilities of approximately 80% and 75%, respectively.
However, approval for all of those products is still pending. The approval process is slow and unpredictable. Some of these filings may not receive final action until late-2025.
The price of Solana saw a small bump on the news. SOL/USD has suffered the most in the last 7 days, with a loss of about 1.2% to trade around $166 at the time of writing. The market is also heavily sensitive to any whiffs of regulation, particularly on how they’d impact investor confidence and future ETF product availability.
Paradoxically, this decline is taking place at a time when institutions are showing even more interest in Solana. Some analysts believe the sluggish market may not be a long-term condition. As per recent trends, Solana has never been overbought. Thus, we can expect a more or less mid-term recovery.
Adding to the bullish action is the word from CME Group that it will launch Solana’s future contracts. If successful, these futures would allow investors to hedge or speculate on SOL’s price in a regulated setting. And while the move is parsed as incremental, it is also predicted to make it easier for future ETFs to be approved.
Futures products do not manage the ETF but enable institutions to speculate on Solana without owning the coin. This is especially important because the regulatory outlook for spot crypto markets remains highly uncertain.
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