Behind the scenes, issuers are preparing for the SEC’s green light to potentially come for SOL ETFs within days, sources tell Blockworks.
Following the SEC approving generic listing standards for crypto ETPs and a flurry of amended Solana fund forms being submitted, many are speculating that a wave of new crypto ETFs is about to crest.
People familiar with the filings at three separate ETF issuers told Blockworks that next week could be a realistic timeline for Solana ETF approval.
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However, a looming US government shutdown could throw a wrench in things, two of the people noted. One said a potential shutdown at midnight would put everything on pause.
Another source said they had “high conviction” that Solana ETFs’ S-1s would go into effect in the first half of October.
It was not immediately clear if issuers expect approved spot SOL ETFs to include staking, but the most recent round of S-1 amendments did address staking.
The biggest hurdle to the optimistic approval timeline is a US government shutdown, which looks increasingly likely. Listing approvals are “very unlikely to happen during a shutdown,” Blockworks reported today.
Issuers first filed for spot solana funds in the summer of 2024, and the SEC began actively engaging with S-1 forms in June, Blockworks first reported.
Solana could become the third crypto asset to achieve a spot ETF, following bitcoin and ether. Solana’s market capitalization of $113 billion makes it one of the handful of largest tokens, albeit significantly smaller than bitcoin and ether, which have market values of $2.2 trillion and $503 billion, respectively.
Other tokens, such as ripple and litecoin, could see fast approvals as well, especially after the SEC passed generic listing standards for digital assets. These standards would allow crypto ETFs to gain the SEC’s approval without rule-changing 19b-4 forms. The SEC has asked filers for a raft of crypto ETFs, including Solana, to withdraw their 19b-4s in light of the generic listing standards, crypto journalist Eleanor Terrett reported.
Despite the possible shutdown, the conversation surrounding new crypto ETF approvals is now centered on “when,” not “if.”
“Honestly, the odds [of new crypto ETF approvals] are really 100% now. Generic listing standards make the 19b-4s and their ‘clock’ meaningless,” Bloomberg senior ETF analyst Eric Balchunas wrote on X, later adding: “The baby could come any day. Be ready.”
The SEC didn’t respond to a request for comment.
