On February 6, the U.S. Securities and Exchange Commission (SEC) officially acknowledged Grayscale’s proposal for a Solana exchange-traded fund (ETF), inviting public feedback. This historic acknowledgment marks the first time the SEC has formally recognized a Solana ETF application, potentially signaling a policy shift toward crypto investment products.
If approved, the Grayscale Solana ETF would provide investors with a regulated pathway to gain exposure to Solana (SOL), reflecting the growing integration of digital assets into traditional financial markets.
SEC's Previous Rejections Stemmed from Classification Issues
According to the SEC press release, stakeholders have a 21-day window to submit public comments on Grayscale’s Solana ETF proposal.
This development comes amid significant leadership changes in U.S. financial regulatory agencies. Under President Donald Trump, Mark Uyeda has been appointed acting SEC Chair, and Caroline Pham is now acting Chair of the Commodity Futures Trading Commission (CFTC). Both officials have expressed pro-crypto views, advocating for clearer regulatory frameworks for digital assets.
In contrast, the previous SEC administration under Gary Gensler consistently rejected Solana ETF filings, instructing Cboe (Chicago Board Options Exchange) to withdraw 19b-4 applications. These rejections stemmed largely from misclassification issues, with the SEC labeling Solana ETFs as commodity trust shares rather than securities.
Finance attorney Scott Johnsson explained that commodity trust shares typically track physical assets like gold or oil, making them an inappropriate classification for a digital asset like Solana. This mislabeling contributed to repeated denials, as the SEC struggled to fit crypto-based ETFs into its existing regulatory framework.
Analysts Highlight the Significance of the SEC’s Acknowledgment
Experts in the financial sector view the SEC’s decision to formally acknowledge a Solana ETF filing for the first time as a significant departure from past regulatory approaches.
- Bloomberg ETF analyst James Seyffart emphasized that previous Solana ETF filings were outright rejected, making this a notable shift in SEC policy.
- Senior ETF analyst Eric Balchunas highlighted the rapid evolution of the SEC’s stance, pointing out that just six weeks ago, the Gensler-led SEC instructed Cboe to withdraw Solana ETF applications.
- Balchunas also noted that Solana was previously categorized as a security by the SEC, making this acknowledgment even more surprising.
Despite this progress, approval remains uncertain. The SEC is expected to make a final decision by October 11, but Polymarket estimates only a 39% chance of approval before July 31.
Still, even a formal review process marks a step toward legitimizing Solana ETFs within the U.S. financial system.
Surge in Crypto ETF Filings as Regulatory Attitudes Shift
Grayscale’s Solana ETF is just one of many crypto investment products gaining traction amid regulatory changes. Other major asset managers have also renewed their efforts:
- Cboe resubmitted 19b-4 filings for Solana ETFs on behalf of Bitwise, VanEck, 21Shares, and Canary Capital, signaling confidence in shifting regulatory attitudes.
- The SEC recently acknowledged an application from the NYSE for a Grayscale Litecoin ETF, marking the second time the regulator has reviewed a spot ETF for Litecoin (LTC).
- Bitcoin ETFs continue to gain momentum as the SEC advances the iShares Bitcoin Trust ETF (IBIT), acknowledging a Nasdaq filing related to in-kind creations and redemptions—a sign that the regulatory framework for Bitcoin ETFs is maturing.
Following the resignation of former SEC Chair Gary Gensler, crypto ETF filings have surged.
- Bloomberg analyst Eric Balchunas reported that 33 new applications were submitted within days of Gensler stepping down, and he predicts that this number could reach 50 within weeks.
- The trend aligns with President Donald Trump’s recent executive order on digital assets, which has spurred renewed engagement from asset managers eager to capitalize on regulatory shifts.
Although final approvals remain uncertain, the SEC’s growing willingness to engage with crypto ETF applications reflects a broader evolution in regulatory policy, one that could shape the future of crypto integration into mainstream financial markets.