The U.S. Securities and Exchange Commission (SEC) has extended its review period for multiple proposed Solana (SOL) exchange-traded funds (ETFs) submitted by major financial institutions including Grayscale, Invesco Galaxy, REX-Osprey, and Fidelity. Grayscale's Solana Trust ETF remains under a 60-day extension, while Fidelity's proposal has entered a public comment phase following updated S-1 filings that disclosed critical details like fund fees – a key regulatory milestone indicating substantive progress toward potential approval.
This development signals a potential shift in the SEC's approach to cryptocurrency ETFs following earlier approvals of Bitcoin and Ethereum funds. Eric Balchunas, Bloomberg analyst, noted: "The SEC’s tone has changed completely. After approving Bitcoin and Ethereum ETFs, Solana is the logical next step." However, Bloomberg's James Seyffart cautioned that "the broader framework needed for altcoin ETFs remains incomplete," highlighting regulatory uncertainties.
Historical precedents suggest significant market implications if approved, as Bitcoin and Ethereum ETFs triggered institutional inflows and price rallies. Analysts anticipate Solana ETFs could unlock new institutional investment channels, potentially driving demand for SOL through direct asset exposure and staking mechanisms. The REX-Osprey proposal specifically includes SOL staking components, which may influence network participation and reward dynamics.