Sources at three separate issuers said that the optimism follows the SEC’s adoption of generic listing standards for crypto exchange-traded products.
Approvals for a spot Solana ETF could come as soon as next week, with a timeline of October 6-10 being a realistic expectation for the SEC’s approval.
As reported by Blockworks on September 30, sources at three separate issuers said that the optimism follows the SEC’s adoption of generic listing standards for crypto exchange-traded products. This eliminated the need for individual 19b-4 filings for token-specific funds.
The standards allow crypto ETFs to gain SEC approval without individual rule-changing forms. This streamlines a process that previously required extensive regulatory review for each asset.
A wave of amended S-1 forms has been submitted by issuers, addressing technical details, including provisions related to staking.
One source expressed “high conviction” that Solana ETF registration statements would go into effect in the first half of October.
However, the looming threat of a U.S. government shutdown could derail the timeline, with two sources noting that approvals are “very unlikely to happen during a shutdown.”
A potential midnight shutdown would pause all SEC activity, according to one person.
Unified Standards Pave the Way
On September 29, it was reported by journalist Eleanor Terrett that the regulator asked issuers to withdraw earlier filings for Solana, XRP, Litecoin, Cardano, and Dogecoin funds, as the new rules automatically cover these assets.
On September 29, Bloomberg senior ETF analyst Eric Balchunas said that approval odds for altcoin ETFs are “really 100% now,” adding that new products could be launched any day.
On September 26, it was noted by Bloomberg ETF analyst James Seyffart that issuers had updated Solana ETF prospectuses in preparation.
According to the report, the most recent round of S-1 amendments addressed staking, though it was not confirmed by sources whether approved funds would include staking features.
SEC Clears Staking Hurdle, Opening Door for Solana ETF Approvals
In August, what was seen as the “last hurdle” for staking features in ETFs was cleared by the SEC. This was done by stating that liquid staking tokens are not securities by default.
Additionally, the SEC’s engagement with issuers suggests that the agency has moved past initial concerns about Solana’s regulatory status.
As over 100 crypto-related filings await approval with the regulator, the altcoin ETF floodgates may open with the approval of Solana products.
