In a potentially significant shift, the U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s amended application for a spot Solana (SOL) exchange-traded fund (ETF) . This marks the first instance of the SEC engaging with a Solana ETF proposal, particularly notable considering the agency’s previous reluctance and the classification of Solana as a security in past legal actions .
Bloomberg ETF analysts James Seyffart and Eric Balchunas view this development as a “notable” step, possibly influenced by recent changes in SEC leadership. Seyffart highlighted that the SEC had previously rejected similar filings . Balchunas added that it appears to be a direct result of the change in leadership.
Previously, under former Chair Gary Gensler, the SEC had reportedly dismissed spot Solana ETF attempts, believing they were incorrectly filed. Finance lawyer Scott Johnsson noted that the SEC rejected previous applications because of misclassification of Solana-related products as commodity trust shares . The SEC’s Division of Enforcement has also referred to Solana as a security, further complicating its consideration for a commodities ETF.
The SEC now has a 240-day window to either approve or deny Grayscale’s proposal, with an estimated final deadline of October 11 . While acceptance of the filing is only the first step in a potentially lengthy process, it signals a possible shift in the SEC’s regulatory stance on cryptocurrency investment products.
Commissioner Hester Peirce is leading a newly-created Crypto Task Force. The task force aims to address regulatory confusion and create a framework that protects investors while preserving the crypto industry’s ability to innovate. Commissioner Peirce has been a vocal critic of the SEC’s past enforcement-driven approach.
In addition to Grayscale’s application, other firms like 21Shares, Bitwise, VanEck, and Canary Capital are also vying to list spot Solana ETFs. The Chicago Board Options Exchange (CBOE) BZX Exchange refiled 19b-4s on their behalf on January 28.
JPMorgan has estimated that an approved spot Solana ETF could attract between $3 billion and $6 billion in net assets within the first year. Predictions market platform Polymarket estimates a 39% chance of a spot Solana ETF approval by the SEC before July 31.
