Solana-linked ETF filing updates now incorporate staking support - Approval chances surge to 91% likelihood
Lounging around Solana ETFs: Here's the lowdown
- The Skinny
- SEC's Gotchas have crypto naturalistas on edge, but Polymarket's prediction keeps the vibes chill.
The SEC's reluctance to bless a slew of altcoin ETFs has sent ripples of worry through the crypto scene. But fear not, my dear crypto hippies! A soothsayer's divination suggests several altcoin ETFs are still ripe for acceptance.
Filing for Solana with a Twist
In response to the regulatory heat, major asset wranglers like Bitwise, Canary, and Grayscale have shown some initiative by amending their Solana [SOL] ETF applications to include staking. This new feature allows the funds to earn rewards by staking Solana coins tucked away in storage.
But alas, a rumor from Reuters whispers that the SEC seems to be taking its sweet time deciding whether to give the green light. Well, as Sebastian the crab would say, better late than never, right?
Bloomberg analyst James Seyffart shared his two cents on that, stating,
"I reckon there's gotta be a dance with the SEC and issuers to smoosh out the wrinkles, so I'd bet my bottom dollar against it happening just yet. If you remember the Bitcoin ETF do-si-do, there were loads of filings popping up left and right in the lead-up to the launch."
BTC – The Boot Camp Graduate
The spotlight has swung toward the growing number of tweaked Solana ETF applications, but lemme tell ya, the path for spot crypto ETFs in ol' US of A has been one tough cookie.
Spot Bitcoin [BTC] ETFs finally scored a yay from the SEC in early 2024, over ten years after Gemini's Winklevoss twins submitted the OG application way back in 2013.
As for Solana, VanEck was the first to propose a spot ETF in mid-2024, and strangely enough, one of the last to revise its filing to incorporate staking provisions.
BlackRock – The Wallflower
It's a curious thing that BlackRock is sitting this Solana ETF tango out, as it raises curiosity about the organization's aspirations in the altcoin ETF game.
Seyffart had this to say on the matter,
"BlackRock ain't danced yet, but don't be surprised if they eventually do – just not in the first round (whenever that happens)."
Polymarket – The Crystal Ball
Despite the SEC's apparent nonchalance regarding altcoin ETF approvals, market sentiment shimmies gleefully in the positive corner.
According to Polymarket's prognostication, the chances of a Solana ETF's approval in 2025 stood at 91% at the time of reporting.
This upbeat outlook seems to echo Solana's performance, with the token trading at $146.40 after a tiny 0.92% daily spurt, as per CoinMarketCap.
Although delays might hint at caution, they don't necessarily point to denial. As ETF analyst James Seyffart wisely spoke,
"Delays on spot crypto ETFs are par for the course. A bunch of XRP ETPs are due in the next few days. If we're gonna see early approvals from the SEC on any of these assets – I wouldn't expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q."
This suggests that the stillness doesn't equal rejection, leaving the gate open for approval, despite the regulatory skepticism.
- The SEC's hesitation to approve altcoin ETFs, including Solana, has caused some unease in the crypto industry.
- In response to regulatory pressure, asset managers like Bitwise, Canary, and Grayscale have modified their Solana ETF applications to incorporate staking, allowing the funds to earn rewards by staking Solana coins.
- James Seyffart of Bloomberg predicts that there will be negotiations between the SEC and issuers to resolve any issues before the acceptance of Solana ETFs.
- After several years of delays, the SEC finally approved spot Bitcoin ETFs in early 2024.
- VanEck was the first to propose a spot Solana ETF in mid-2024, but interestingly, one of the last to revise its filing to include staking provisions.
- Despite the SEC's apparent indifference towards altcoin ETF approvals, Polymarket's prediction suggests a high probability (91%) of a Solana ETF's approval in 2025.
