Bettors on the decentralised prediction market Polymarket believe there is an 89% chance that the U.S. SEC will approve spot Solana ETFs in 2025. This optimism follows the agency’s earlier approval of spot Bitcoin and Ethereum investment products.
Meanwhile, Grayscale, a leading cryptocurrency asset management firm, has filed with the SEC to create a Solana ETF. The company has also submitted applications for other crypto-focused ETFs, including its “Bitcoin Adopters ETF” and a synthetic Ethereum ETF.
Strict Regulatory History
Gensler’s tenure was marked by tough enforcement actions against crypto firms, which many in the industry viewed as overly aggressive.
Under his leadership, the SEC filed lawsuits against major cryptocurrency exchanges, including Binance and Coinbase, and labelled several cryptocurrencies, such as Solana, as securities. This classification complicates the approval process for any Solana-based investment products.
The SEC’s Division of Enforcement has categorised Solana as a security, creating challenges for other divisions within the SEC that oversee commodities ETFs. This makes regulatory approval for a Solana ETF less likely in the near term, according to Bloomberg ETF analyst James Seyffart.
Also Read: Brazilian Securities Regulator Approves First Solana Spot ETF, Price Surges
Industry Challenges
Seyffart has stated that the current regulatory landscape must change before a Solana ETF can be approved. “The SEC’s Division of Enforcement is calling Solana a security, which prevents other SEC divisions from analyzing it for a commodities ETF wrapper,” he said in a recent interview.
Resolving this issue would likely require the appointment of a new SEC Chair, along with clear regulatory guidelines for cryptocurrencies.
Five asset managers, that is Grayscale, VanEck, 21Shares, Bitwise, and Canary Capital—have already filed applications for Solana ETFs. However, it remains uncertain if or when these products will receive approval.
Solana’s Price Actions
In the meantime, Solana’s market performance has shown signs of volatility. As of now, Solana is trading at $247.30, down by 5.35% in the past 24 hours. The global cryptocurrency market cap stands at $120.27 billion, while Solana’s 24-hour trading volume has decreased by over 27%.
The cryptocurrency industry is keeping a close eye on the SEC’s decisions under new leadership. While optimism is growing for spot Solana ETFs in 2025, the regulatory hurdles remain significant. Until these issues are addressed, the timeline for approval of Solana ETFs and other crypto-related products will likely remain uncertain.
With Grayscale and other firms pushing for innovative ETF offerings, the next steps taken by the SEC will be crucial in shaping the future of crypto investments in the United States.
Also Read: Solana Sees Significant Price Surge Amid ETF Expectations