Forwarding the original title “Solana Spot ETF Welcomes Substantial Progress, SEC Focuses on Evaluating Stake and Redemption Mechanisms, Expected to Launch as Early as July”

As the Solana ecosystem finds itself in a low emotional valley, an ETF news has once again ignited the market’s optimistic expectations. On June 11, the U.S. SEC requested potential Solana Spot ETF issuers to update their S-1 application documents. This move is seen by the market as a turning point signaling that the Solana ETF is entering the substantive review stage, releasing positive signals from the regulatory authorities. Driven by this, market expectations for formal approval in July have rapidly heated up, leading to a general rise in the Solana ecosystem.

Solana Spot ETF approval accelerates, SEC focuses on physical redemption and stake mechanism

According to Blockworks, multiple informed sources have revealed that the U.S. SEC has notified several issuers planning to launch a Solana Spot ETF to submit updated S-1 registration statement documents within the next week. This means that several issuers planning to launch a Solana Spot ETF have been notified to submit updated S-1 registration statement documents within the next week.

Sources indicate that the SEC will provide review feedback within 30 days after the submission of the S-1 filing. The updates in the filing mainly focus on the modifications to the language regarding physical redemptions and the handling of the stake mechanism. These two aspects are also becoming the core focus in the approval process for cryptocurrency Spot ETFs.

In the design of cryptocurrency asset ETFs, physical redemption refers to the ability for investors to exchange their ETF shares for the corresponding underlying assets (such as SOL) rather than cash. During the SEC’s review of the S-1 filing, the agency will focus on how the issuer executes physical redemption, how asset values are calculated, and whether descriptions regarding the support for partial or full asset redemptions in cash are clear, legal, compliant, and operationally feasible. The establishment of this mechanism directly relates to the market transparency, liquidity, and arbitrage efficiency of the ETF, and its compliance statements also serve as an important basis for the SEC to determine whether the ETF is suitable for retail and institutional investors.

The staking mechanism is another focus of market attention. Staking is a native asset appreciation method for PoS public chains like Solana, which can bring on-chain rewards to holders. According to Staking Rewards, as of June 11, Solana’s staking rate was 65.44% with a staking yield of 7.56%, more than double that of Ethereum (3.13%). Previously, the SEC had repeatedly avoided staking-related clauses in the Ethereum ETF approval process, concerned that it might involve characteristics of securities returns. However, in negotiations with BlackRock regarding the Ethereum Spot ETF in May this year, the SEC’s stance has softened and started accepting the inclusion of staking features under certain conditions. Recently, informed sources revealed that the SEC currently holds an open attitude towards the inclusion of the staking mechanism in the Solana Spot ETF, thus requiring issuers to have sufficient legal clarity and implementation details.

Since Grayscale was the first to submit the 19b-4 filing for the Solana Spot ETF in 2024 and it was officially accepted by the SEC in February this year, the Solana ETF has entered a substantial regulatory process. Although the SEC announced again at the end of May that it would delay the approval of some Solana ETFs, citing the need for “more time to evaluate legal and policy issues,” the recent S-1 filing amendment directive sends an important signal that the regulatory body is no longer rejecting the feasibility of the Solana ETF, transitioning from a stance of denial to one of regulatory negotiation and detail refinement.

So far, Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale have all submitted applications for a Solana Spot ETF.

Affected by this news, CoinGecko data shows that Solana ecosystem tokens have experienced a widespread increase, with the price of SOL reaching a new high for the month. Previously, due to factors such as the Pump.fun token’s siphoning effect and the diversion of liquidity incentives from other chains, the participation in Solana had significantly declined compared to the beginning of the year.

It is expected to be implemented as early as July, with an approval probability as high as 90%.

After the successful launch of Bitcoin and Ethereum Spot ETFs, the market’s focus is quickly shifting to the potential candidates for the next round of crypto Spot ETFs.

Solana is the third cryptocurrency asset to apply for a Spot ETF following Bitcoin and Ethereum. According to Blockworks citing informed sources, based on the latest updates of ETF application documents, the Solana Spot ETF is expected to be approved in the next 3 to 5 weeks, potentially as early as July, which is earlier than the market’s previous general expectation of the end of the second half of the year.

Bloomberg ETF analyst James Seyffart stated in his latest forecast that related products may be approved this year, possibly as early as July. He mentioned, “We believe the SEC may now process the 19b-4 application documents regarding Solana and stake ETFs earlier than originally planned. Issuers and industry participants have likely been working with the SEC and its crypto asset working group to develop the rules, but the deadline for the SEC to make a final decision on these applications still falls in October of this year.”

Solana is considered to have met the key prerequisites for approval. James Seyffart added that Solana and XRP’s ETF applications currently have derivative ETFs approved, which paves the way for the approval of spot ETFs.

In fact, in March this year, Volatility Shares launched two Solana futures ETFs, which are the first L1 blockchain projects to obtain U.S. futures ETF approval after Bitcoin and Ethereum, and are seen as an important indicator for assessing the maturity of the spot ETF market. This path closely aligns with the advancement pace of Bitcoin and Ethereum spot ETFs, starting with futures ETFs “paving the way” before promoting the landing of spot products. (Related reading:Current Status of the Shanzhai ETF Craze: A Detailed Look at Cryptocurrency ETF Applications in 2025)

Outside of the United States, the Toronto Stock Exchange in Canada launched four Solana Spot ETFs in April, supporting staking functionality. This product innovation not only demonstrates its appeal to institutional investors but also exerts indirect pressure on the SEC from an international regulatory perspective.

In James Seyffart’s latest prediction on the approval probability of cryptocurrency Spot ETFs, Solana and Litecoin are in the first tier of approval probability. Among them, Litecoin and Solana have an approval probability of 90%; XRP has an approval probability of 85%; Dogecoin and HBAR are expected to have a probability of 80%; Cardano, Polkadot, and Avalanche are expected to have a probability of 75%; SUI is expected to have a probability of 60%.

Although Solana has met the majority of the key conditions for approval of a U.S. Spot ETF, the SEC previously listed SOL as an “unregistered security” in its lawsuits against Coinbase and Binance. Although some of these lawsuits have been suspended or withdrawn, the securities label has not been officially clarified or ruled upon, which still poses a potential obstacle.

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