Author: Nancy, PANews
Original Title: Solana Spot ETF Sees Substantial Progress, SEC Focuses on Staking and Redemption Mechanism, Potentially Approved by July
At a time when the Solana ecosystem is experiencing a low emotional tide, an ETF news has once again ignited market optimism. On June 11, the US SEC requested potential Solana spot ETF issuers to update their S-1 application documents. This move is viewed by the market as a turning signal for Solana ETF entering a substantive review stage, releasing a positive regulatory attitude signal. Driven by this, market expectations for formal approval in July quickly heated up, and the Solana ecosystem subsequently ushered in a widespread rally.
Solana Spot ETF Approval Accelerates, SEC Focuses on Physical Redemption and Staking Mechanism
According to Blockworks, multiple informed sources revealed that the US SEC has notified several potential Solana spot ETF issuers to submit updated S-1 registration statement documents within the next week. This means that multiple potential Solana spot ETF issuers have been notified to submit updated S-1 registration statement documents within the next week.
Sources indicated that the SEC will provide review feedback within 30 days after the S-1 file submission, with the file update content mainly focusing on modifying physical redemption language and handling the staking mechanism, both of which have become core focus points in the crypto spot ETF approval process.
In the design of crypto asset ETFs, physical redemption refers to investors being able to exchange ETF shares for the corresponding underlying assets (such as SOL), rather than cash. When the SEC reviews the S-1 file, the agency will focus on examining whether the issuer's description of how physical redemption is executed, how asset value is calculated, and whether partial or full asset redemption in cash is supported is sufficiently clear, legal, compliant, and operable. This mechanism directly relates to the ETF's market transparency, liquidity, and arbitrage efficiency, and its compliant description has become an important basis for the SEC to measure whether the ETF is suitable for retail and institutional investors.
The staking mechanism is another market focus, where staking is a native asset appreciation method for PoS public chains like Solana, capable of bringing on-chain returns to position holders. Staking Rewards data shows that as of June 11, Solana's staking rate is 65.44%, with a staking yield of 7.56%, more than twice that of Ethereum (3.13%). Previously, the SEC often avoided staking-related terms in Ethereum ETF approvals, concerned about potential securities income attributes. However, in negotiations with BlackRock about the Ethereum spot ETF in May this year, the SEC's attitude has softened, beginning to accept the inclusion of staking functionality under specific conditions. This time, informed sources revealed that the SEC currently maintains an open attitude towards including the staking mechanism in Solana spot ETFs, thus requiring issuers to have sufficient legal clarity and implementation details.
Since Grayscale first submitted the 19b-4 file for the Solana spot ETF in 2024 and was formally accepted by the SEC in February this year, the Solana ETF has entered a substantive regulatory process. Although the SEC announced another delay in the approval of some Solana ETFs in late May, citing the need for "more time to evaluate legal policy issues," this S-1 file revision instruction releases an important signal that the regulatory agency no longer rejects the feasibility of Solana ETFs and has shifted from a rejection stance to rule negotiation and detail polishing.
So far, Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale have all applied for Solana spot ETFs.
Influenced by this news, CoinGecko data shows that Solana ecosystem tokens experienced a widespread rally, with SOL price once reaching a new monthly high. Previously, due to the blood-sucking effect of Pump.fun's token issuance and other on-chain liquidity incentive distractions, Solana's participation enthusiasm had significantly declined compared to the beginning of the year.
Potentially Approved by July, with Approval Probability as High as 90%
After the successful landing of Bitcoin and Ethereum spot ETFs, the market's focus is rapidly shifting to potential targets for the next round of crypto spot ETFs.
Solana is the third crypto asset to apply for a spot ETF after Bitcoin and Ethereum. According to Blockworks citing informed sources, based on the latest ETF application file update rhythm, the Solana spot ETF is expected to be approved within the next 3 to 5 weeks, potentially as early as July, which is earlier than the market's previous expectation of late this year.
Bloomberg ETF analyst James Seyffart in his latest prediction stated that related products might be approved this year, possibly as early as July. He said, "We believe the SEC may now process the 19b-4 applications for Solana and staking ETFs earlier than originally planned. Issuers and industry participants have likely been collaborating with the SEC and its crypto asset working group to develop rules, but the SEC's final decision deadline for these applications remains in October this year."
Solana is considered to have met key approval prerequisites. James Seyffart added that Solana and XRP ETF applications currently have derivatives ETFs approved, which paves the way for spot ETF approval.
In fact, in March this year, Volatility Shares launched two Solana futures ETFs, the first L1 public chain project to obtain a US futures ETF license after Bitcoin and Ethereum, viewed as an important indicator of spot ETF market maturity. This path highly echoes the progression of Bitcoin and Ethereum spot ETFs, first "paving the way" with futures ETFs, then promoting spot product landing. (Related reading: Current State of Altcoin ETF Boom: Comprehensive Overview of 2025 Crypto ETF Applications)
Outside the US, the Toronto Stock Exchange launched four Solana spot ETFs in April, supporting staking functionality. This product innovation not only demonstrates attractiveness to institutional investors but also indirectly pressures the SEC from an international regulatory dimension.
In James Seyffart's latest prediction of crypto spot ETF approval probabilities, Solana and Litecoin are in the first echelon. Among them, Litecoin and Solana have an approval probability of 90%; XRP has an 85% approval probability; Dogecoin and HBAR are expected to have an 80% probability of passing; Cardano, Polkadot, and Avalanche have a 75% expected approval probability; SUI has a 60% expected approval probability.
Although Solana has met most key conditions for US spot ETF approval, the SEC previously listed SOL as an "unregistered security" in lawsuits against Coinbase and Binance. While some of these lawsuits have been partially suspended or withdrawn, the securities label has not been officially clarified or ruled, still constituting a potential obstacle.
