Key Takeaways:
- The SEC has used its last procedural delay, setting October 16, 2025, as the final deadline for Solana ETF proposals from Bitwise and 21Shares.
- Market reaction remains mixed as Solana-linked tokens face price drops, while institutional interest in the blockchain grows.
- Approval could set a precedent for other altcoin ETFs, but regulatory uncertainty over Solana’s classification still lingers.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on two high-profile Solana exchange-traded fund (ETF) applications, invoking its maximum 60-day extension authority. The move leaves October 16, 2025, as the hard deadline for either approval or denial.
The delay impacts proposals from Bitwise and 21Shares, both seeking to list Solana ETFs on the Cboe BZX Exchange. Two other applications from Canary Funds and Marinade Finance are also on hold.
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Why the SEC Hit the Brakes
Issued under the SEC’s Division of Trading and Markets, the orders use nearly identical language, citing the need for “sufficient time to consider” proposed rule changes. These changes in rules are classified as BZX Rule 14.11(e)(4) that governs Commodity-Based Trust Shares and made stringent requirements concerning eligibility, disclosure, and market surveillance.
The applications, originally filed in January 2025, have already been through an initial extension in March and a formal review process in May. By invoking the final 60-day delay, the SEC has exhausted all procedural options short of making a decision.
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Regulatory Concerns Beyond the Clock
Market manipulation risks and the adequacy of surveillance-sharing agreements are also under scrutiny. These safeguards are central to the SEC’s evaluation of whether a Solana ETF can operate in a compliant, investor-protected environment.
Market Response and Investor Positioning
The response of Solana to the news has been varying in terms of the market. Meme coins focused on Solana plunged dramatically and the group fell by 8.5% in 24 hours. Top tokens, including BONK, Chill House, and MLG saw double-digit declines.
However, institutional interest in Solana continues to rise. Custody solutions, liquidity depth, and futures market development including CME Solana contracts are giving major players more tools to hedge and manage exposure.
What’s at Stake for Solana ETFs
If approved, these ETFs would provide regulated exposure to Solana’s native token (SOL), allowing traditional investors to participate without directly holding the asset. Both Bitwise and 21Shares plan to leverage the Commodity-Based Trust Share framework, similar to the structure used by approved Bitcoin and Ethereum spot ETFs.
The ruling of the SEC is anticipated to play a significant role in the direction of other attempts to launch altcoin ETF. Industry analysts have termed Solana a possible bellwether: an SEC release would put an Albion-like green light on the filings of issuers ProShares, Grayscale, and VanEck, who have already updated their proposals to comply with SEC requirements.
