The U.S. Securities and Exchange Commission (SEC) has postponed decisions on five proposed Solana (SOL) exchange-traded funds (ETFs), extending the regulatory timeline for products from issuers including Fidelity, VanEck, Bitwise, 21Shares, and Canary Capital. The delay reinforces the SEC’s cautious stance on crypto-based investment products that go beyond Bitcoin and Ethereum, casting fresh doubt on the possibility of a Solana ETF approval in the near term.
The latest regulatory delays affect a growing list of proposed Solana-linked ETFs: the 21Shares Core Solana ETF, Bitwise Solana ETF, VanEck Solana ETF, Canary Solana Trust, and Fidelity Solana Fund. While deadlines had been staggered across March through May 2025, the SEC has now extended its review process well into the second half of the year in most cases.
The most recent round of deferrals came just before May 19, when a key decision was due on the 21Shares, Bitwise, VanEck, and Canary filings. Rather than issue a ruling, the SEC formally initiated public proceedings, a step that opens the door for public comment and allows the agency to defer final judgment further.
Fidelity’s Solana Fund, submitted later in April, saw its review window extended to July 8, with the SEC stating it needs “sufficient time to consider the proposed rule change and the issues raised therein.”
While such procedural moves are not rejections, they often signal regulatory hesitation and increase the likelihood of prolonged back-and-forth before any product sees daylight.
Public Comment Period: A Familiar Roadblock
The SEC’s decision to open a comment period is a routine part of its extended review process, but also a signal that substantive questions remain unanswered. In its statement, the Commission emphasized that the move “does not indicate that the Commission has reached any conclusions” on the merits of the applications, but that it is seeking broad input from stakeholders.
This strategy has been used in the past with numerous crypto-linked ETF proposals, particularly those involving altcoins such as XRP, Litecoin, and Dogecoin. Nearly all have faced delays or eventual rejections. Even the long-anticipated Grayscale Solana Trust proposal is still stalled in a similar regulatory limbo.
The public comment phase allows market participants, legal experts, industry associations, and concerned individuals to submit opinions on the proposed ETFs. The SEC is particularly likely to assess comments related to market manipulation risks, liquidity concerns, and underlying custody and valuation infrastructure for the Solana blockchain.
Approval Odds Shift on Polymarket as Delays Mount
The mounting delays have not gone unnoticed by market participants betting on the regulatory trajectory of crypto ETFs. On Polymarket, a popular crypto-based prediction platform, the odds of a Solana ETF being approved by July 31 have dropped to just 16%. By contrast, the probability of approval by December 2025 remains much higher at 85%, reflecting expectations that delays are procedural, not fatal.
Still, the SEC’s cautious posture on anything outside of Bitcoin and, to some extent, Ethereum, continues to dampen short-term optimism.
Post-Bitcoin ETF Landscape
The regulatory delays around Solana ETFs come just months after the SEC reluctantly approved several spot Bitcoin ETFs in January 2024, following a court loss to Grayscale over its rejected application. While this marked a turning point in U.S. crypto investment policy, it did not establish a free pass for other crypto assets.
Unlike Bitcoin, which the SEC has generally avoided labeling as a security, most other cryptoassets - including Solana - may be viewed by the agency as unregistered securities. That classification creates legal and compliance hurdles for ETF products tracking such assets, particularly if the underlying market lacks what the SEC views as sufficient investor protections or price discovery mechanisms.
Chair Gary Gensler has repeatedly stated that the approval of Bitcoin ETFs “should not be interpreted as a signal” that similar treatment will be given to other digital assets.
Legal Ambiguity Around Solana’s Status
One of the central issues at play is the unresolved legal status of Solana under U.S. securities law. The SEC has previously hinted - without definitive ruling - that SOL may fall under its regulatory remit as a security. This gray zone poses serious complications for any fund manager attempting to launch a SOL-backed ETF.
ETF issuers must demonstrate that the underlying asset trades on a regulated market of significant size, a standard the SEC uses to judge whether market manipulation is sufficiently constrained. With Solana primarily traded on offshore or unregulated crypto exchanges, satisfying this requirement remains a high hurdle.
Furthermore, the SEC’s pending lawsuits against other crypto projects—like Coinbase and Binance - have included references to various tokens potentially being securities, creating a chilling effect on ETF issuers targeting those assets.
Bitcoin Dominates, Ethereum Next?
Despite the slow-moving pipeline for altcoin ETFs, institutional interest in crypto remains concentrated on Bitcoin, with Ethereum a distant second. The SEC has yet to approve any spot Ethereum ETF, though several proposals - including those from BlackRock and Fidelity - are currently under review. Decisions on Ethereum ETFs are expected later this year, potentially setting a precedent for how the agency will treat other Layer 1 tokens like Solana.
However, Ethereum is more institutionally entrenched, with a broader decentralized infrastructure and deeper integration into regulated finance (via futures and CME products). Solana, by contrast, remains more niche and technologically experimental in the eyes of regulators.
Market Reaction: Resilience or Indifference?
While the ETF delays were widely expected, they did little to dent Solana’s spot market. SOL rose 2.7% over the past 24 hours to around $169, extending a broader trend of price stability despite regulatory headwinds.
Some market analysts argue that Solana’s lack of price reaction suggests the ETF narrative has already been priced in - or that investors are increasingly tuning out U.S. regulatory developments in favor of ecosystem-level trends.
Others point to growing international demand for Solana exposure, particularly in jurisdictions like Canada, Switzerland, and the UAE, where regulatory regimes for digital asset products are more developed and accommodating. This offshore momentum may be sustaining demand for SOL even as U.S. ETF approval remains out of reach.
Political Landscape: Pro-Crypto Rhetoric, But No Fast Track
Although the U.S. has seen a shift toward more crypto-friendly rhetoric in the 2024–2025 legislative cycle, particularly with upcoming elections and increasing bipartisan interest in blockchain innovation, the SEC remains operationally independent. Regulatory processes are still dictated by existing law and institutional inertia, not campaign promises.
Efforts to pass comprehensive crypto legislation - such as the Financial Innovation and Technology for the 21st Century Act (FIT21) - may eventually provide clarity for altcoin regulation, but any such changes are unlikely to impact ETF decisions in the immediate future.
In the meantime, fund issuers will need to continue navigating the lengthy and uncertain SEC review process while preparing for repeated delays.
Final thoughts
The SEC’s repeated deferrals of Solana ETF applications reveal both the complexity and caution that continues to dominate U.S. crypto regulation. Despite growing institutional appetite and strong market performance from Solana, legal ambiguity and procedural conservatism remain key barriers to ETF approval.
While the market may be adjusting to this new normal, the broader implications are significant: unless regulatory clarity is achieved through legislation or legal precedent, ETF expansion beyond Bitcoin will remain a slow and uncertain path.
Until then, Solana’s role in regulated investment products will be limited - and the ETF conversation will continue to be dominated by procedural delays, public comment periods, and uncertain timelines.