Behind the scenes, issuers are making ready for the SEC’s inexperienced gentle to probably come for SOL ETFs inside days, sources inform Blockworks.
Following the SEC approving generic itemizing requirements for crypto ETPs and a flurry of amended Solana fund kinds being submitted, many are speculating {that a} wave of recent crypto ETFs is about to crest.
Folks accustomed to the filings at three separate ETF issuers informed Blockworks that next week might be a practical timeline for Solana ETF approval.
Learn extra: Crypto ETF swell approaching after Grayscale’s latest launch
Nonetheless, a looming US authorities shutdown might throw a wrench in issues, two of the individuals famous. One stated a possible shutdown at midnight would put every part on pause.
One other supply stated that they had “excessive conviction” that Solana ETFs’ S-1s would go into impact within the first half of October.
It was not instantly clear if issuers count on authorized spot SOL ETFs to incorporate staking, however the latest spherical of S-1 amendments did address staking.
The largest hurdle to the optimistic approval timeline is a US authorities shutdown, which seems to be more and more seemingly. Itemizing approvals are “most unlikely to occur throughout a shutdown,” Blockworks reported today.
Issuers first filed for spot solana funds in the summertime of 2024, and the SEC started actively participating with S-1 kinds in June, Blockworks first reported.
Solana might turn into the third crypto asset to realize a spot ETF, following bitcoin and ether. Solana’s market capitalization of $113 billion makes it one of many handful of largest tokens, albeit considerably smaller than bitcoin and ether, which have market values of $2.2 trillion and $503 billion, respectively.
Different tokens, such as ripple and litecoin, might see fast approvals as properly, particularly after the SEC handed generic itemizing requirements for digital belongings. These requirements would enable crypto ETFs to realize the SEC’s approval with out rule-changing 19b-4 kinds. The SEC has requested filers for a raft of crypto ETFs, together with Solana, to withdraw their 19b-4s in gentle of the generic itemizing requirements, crypto journalist Eleanor Terrett reported.
Regardless of the attainable shutdown, the dialog surrounding new crypto ETF approvals is now centered on “when,” not “if.”
“Actually, the percentages [of new crypto ETF approvals] are actually 100% now. Generic itemizing requirements make the 19b-4s and their ‘clock’ meaningless,” Bloomberg senior ETF analyst Eric Balchunas wrote on X, later including: “The baby might come any day. Be prepared.”
The SEC didn’t reply to a request for remark.
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