Solana ETF may be approved by the SEC as soon as next week

Solana ETF may be approved as early as next week, with the timeframe from October 6 to 10 seen as a realistic expectation for the SEC's decision.

According to Blockworks, on September 30th, sources from three issuers stated that this optimism comes after the SEC approved a common listing standard for cryptocurrency ETF products. This new regulation eliminates the requirement to file a 19b-4 separately for each fund based on each type of token, making the approval process simpler and faster.

The issuers have collectively submitted amended S-1 filings, focusing on technical details, including provisions related to staking. A source indicated that they have a “very high confidence” that the Solana ETF registration will be effective in the first half of October.

However, the risk of the U.S. government shutting down could disrupt the process. Two other sources noted that approval is “very unlikely” if a shutdown occurs, as the SEC would have to suspend all operations.

General Standards Paving the Way

On September 29, journalist Eleanor Terrett revealed that the SEC has requested issuers to withdraw the ETF filings for Solana, XRP, Litecoin, Cardano, and Dogecoin due to these assets now being covered by new regulations.

Bloomberg's senior ETF expert, Eric Balchunas, affirmed on the same day that “the likelihood of altcoin ETF approval is now at 100%,” also stating that the new product could launch at any time. Earlier, on September 26, expert James Seyffart also noted that issuers had updated the Solana ETF prospectus to be ready.

The latest revised S-1 focuses on staking, although it is still unclear whether the funds will integrate this feature after approval. In August, the SEC removed the biggest barrier to staking in ETFs when it asserted that liquid staking tokens are not automatically considered securities.

Notably, the SEC's active collaboration with issuers indicates that the agency has overcome initial concerns regarding the legal status of Solana.

With over 100 cryptocurrency-related applications awaiting approval, the approval of the Solana ETF could trigger a wave of altcoin ETFs surging in the market.

Thạch Sanh