Seven contenders for a Solana ETF have submitted S-1s to the SEC. This action represents another important milestone in the wending progress towards a spot Solana ETF debuting in the U.S. market. These filings contain some strong staking language. This may indicate that issuers are preparing to have long back and forth negotiations with the SEC to mitigate regulatory concerns.

Fidelity Investments was first out of the gate, filing its first S-1 registration statement on June 13. So on that same day, 21Shares, Franklin Templeton, Grayscale Investments, Bitwise Investments and Canary Capital filed S-1 amendments. This is further evidence of their joint effort to move along their Solana ETF applications.

SEC Expected to Engage in "Back and Forth" with Applicants

On April 30, Bloomberg Intelligence increased its implied chances of the SEC approving a Solana ETF in 2025 to 90%. This record jump demonstrates deepening optimism in the market. With the recent surge in filings, anticipation is building that the SEC will engage in detailed discussions with the applicants.

"I think there needs to be a back and forth with the SEC and issuers to iron out details, so I doubt it." - James Seyffart

James Seyffart, an ETF analyst with Bloomberg Intelligence, cautioned against expecting an approval any day now. Among other things, he stressed the importance of continued, careful negotiations between the SEC and the issuers.

"But I have no insight into what will actually happen." - James Seyffart

One of the most interesting things about all of the Solana ETF filings are the explicit mentions of staking language.

Staking Language Included in Filings

Issuers now are keenly focused on the potential for staking rewards to be included in their ETF products. This effort has the potential to dramatically improve investor returns. In doing so, it poses some very tricky regulatory questions that will, more than likely, need to be clarified by the SEC themselves.

"All of them include staking language, I believe." - James Seyffart

Bloomberg’s senior ETF analyst, Eric Balchunas, isn’t just hopeful. He’s bullish on the prospects of altcoin ETFs. He thinks Solana might pave the way for more cryptocurrencies to be added to these investment products.

Solana Leads Potential Altcoin ETF Wave

Solana futures open interest recently blew up to $7.4 billion. This surge is largely fueled by ETF speculation, showing a significant appetite for cryptocurrency and its potential need for mainstream adoption. The launch of US-based spot Bitcoin ETFs in January 2024 has further fueled expectations that other crypto ETFs could follow suit. Gemini co-founders Tyler and Cameron Winklevoss were responsible for the first spot Bitcoin ETF application submitted to the SEC back in 2013. This action was unprecedented in the cryptocurrency ecosystem.

"Get ready for a potential altcoin ETF summer with Solana likely leading the way." - Eric Balchunas

Solana futures open interest has surged to $7.4 billion amid the ETF speculation, reflecting the growing interest in the cryptocurrency and its potential for mainstream adoption. The launch of US-based spot Bitcoin ETFs in January 2024 has further fueled expectations that other crypto ETFs could follow suit. The first spot Bitcoin ETF application with the SEC was filed by Gemini co-founders Tyler and Cameron Winklevoss in 2013.