- Spot Solana ETF moves forward with the SEC, requesting S-1 amendments due next week.
- The price of Solana increased by 6% to $165 as broader market sentiment flips bullish.
A recent market update reveals progress in the Solana Exchange-Traded Fund (ETF) applications submitted to the US Securities and Exchange Commission (SEC). The spot ETF development comes as the price of Solana (SOL) rallies 6% in just 24 hours.
Solana ETF Prospects Improve
According to a tweet by Dogen News, the SEC has given issuers a week to submit revised S-1 forms, per disclosure from undisclosed sources.
Asset managers, including VanEck, 21Shares, Grayscale, Bitwise, Canary Capital, Franklin Templeton, and Fidelity, have submitted applications to list a spot Solana ETF. These issuers will need to update their S-1 filings within the next week to address the agency’s requests.
Many sources claim these updates will likely include clarifications on in-kind redemptions and staking. Moreover, the SEC is reportedly open to allowing staking in these ETFs.
The market awaits regulatory action as the agency plans to comment on the filings within 30 days. This feedback will help issuers refine their proposals to meet regulatory requirements.
As mentioned in our previous news brief, Polymarket predicted an 85% chance for a SOL ETF approval by 2025. Other sources have forecasted a possible SOL approval by mid-July 2025.
However, delays are possible, as seen with the Bitcoin and Ethereum ETFs. The SEC’s final decision will depend on issuers’ compliance with regulatory concerns.
While the US is still stalling with the launch of a spot SOL ETF, Canada has moved on with one. As outlined in our recent blog post, Canada has launched Solana ETFs that offer direct SOL exposure with staking features.
This has further placed the US SEC in the spotlight as critics see the country losing in the emerging finance race.
Solana Price Setup and Predictions
The request for amended S-1 filings has already led to a 6% surge in the price of SOL, reflecting market optimism. An approval could further boost the price of Solana and institutional adoption by providing a regulated investment vehicle.
According to data from Marketcap, SOL is currently priced at $165. The daily trading volume is up 54% to $5.6 billion, indicating heightened market activity. The upsurge in the Solana market comes amid a broader market rally. Bitcoin (BTC), the leading cryptocurrency, has rallied to over $109,000, and Ethereum (ETH) has climbed to $2,700.
With ETF approval odds trending bullish for 2025, technicals still show heavy resistance up to $182 and no real breakout. Nonetheless, the odds of SOL rallying towards $1,000 are still high in the long term. This expectation is based on high hopes for a spot for Solana ETF approval.
Also, the appointment of Paul Atkins as the permanent chair of the U.S. SEC adds to the optimism, as detailed in our last report.
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