Solana Spot ETF review accelerated, expected to land as early as July

Recently, the U.S. Securities and Exchange Commission ( SEC ) requested potential Solana Spot ETF issuers to update their S-1 application documents, a move interpreted by the market as a signal that the Solana ETF has entered the substantive review stage. This news has injected new optimism into the Solana ecosystem, driving the prices of related tokens to rise generally.

SEC Focuses on Physical Redemption and Staking Mechanism

According to reports, the SEC has notified several issuers planning to launch Solana Spot ETFs to submit updated S-1 registration statement documents in the near future. The SEC is expected to provide review feedback within 30 days after the document submission. This update mainly focuses on two aspects: the modification of the physical redemption language and the handling of the staking mechanism.

Physical redemption allows investors to exchange ETF shares for the corresponding underlying assets (such as SOL) instead of cash. The SEC will focus on whether the issuer's descriptions of the execution of physical redemption, asset value calculations, and cash redemption support are clear, compliant, and actionable. These details directly relate to the market transparency, liquidity, and arbitrage efficiency of the ETF.

The staking mechanism is another focus of attention. As a means of value appreciation for the native assets of the PoS public chain, Solana's staking yield reaches 7.56%, far higher than Ethereum. Although the SEC had previously taken a cautious stance on ETFs that include staking features, their attitude has recently softened. It is reported that the SEC is currently open to the inclusion of staking mechanisms in Solana Spot ETFs, but requires issuers to provide sufficient legal explanations and implementation details.

Solana ETF approval process accelerates

Since the SEC officially accepted the Solana Spot ETF application in February this year, the approval process has entered a substantive stage. Although the SEC announced a delay in approval at the end of May, the latest S-1 filing amendment indicates that the regulatory body is no longer completely dismissing the feasibility of the Solana ETF, shifting instead to a phase of regulatory negotiation and detail refinement.

Currently, several well-known financial institutions have submitted applications for Solana Spot ETF. Market analysts predict that the relevant products may be approved as early as July, earlier than the previously expected year-end timeline. This expectation is based on the fact that Solana has met key prerequisites for approval, including the successful launch of futures ETFs and precedents in overseas markets.

However, there are still potential obstacles. The SEC previously classified SOL as "unregistered securities"; although related lawsuits have been partially suspended or withdrawn, this classification has not been officially clarified or adjudicated.

Overall, the approval process for the Solana Spot ETF is accelerating, and the market holds an optimistic view on its approval. If approved successfully, Solana will become the third cryptocurrency asset to have a US Spot ETF, following Bitcoin and Ethereum, which will undoubtedly bring greater attention and capital inflow from institutional investors.