The SEC has officially started a review of Fidelity’s Solana ETF, delaying its potential approval and initiating a 35-day public feedback window.
New crypto ETF rules require detailed and clear disclosures, affecting the pace of approvals for altcoin-based financial products like Solana ETFs.
Alternative Solana-related investment products are gaining traction as traditional spot ETF applications remain under regulatory consideration.
The United States Securities and Exchange Commission has postponed its decision on the proposed Fidelity Solana Fund. On July 7, 2025, the agency confirmed it would begin a formal review process of the application submitted by the Cboe BZX Exchange. This proposal seeks approval for a rule change to list and trade a spot Solana ETF under Fidelity’s management.
The SEC’s latest filing outlines a structured timeline for public input. Interested parties now have 21 days to submit comments and an additional 14 days to provide rebuttals. The delay was anticipated by industry analysts, who noted that approvals for altcoin-based ETFs remain under close regulatory scrutiny.
Analyst commentary on expected delay
Bloomberg ETF analyst James Seyffart stated that the delay was in line with expectations. He noted that the SEC continues to hold back on spot ETFs tied to altcoins due to ongoing regulatory uncertainty. Despite recent progress in crypto ETF policy, the broader framework for assets like Solana remains incomplete.
The timeliness is in part due to a recently published SEC guidance document that plays a central role in the delay. Reports indicate that the agency has brought new standards into place whereby asset managers are expected to showcase risks, custody models, and product features in simple words. These instructions form a larger trend to enhance the transparency of crypto exchange-traded products.
Potential to streamline future approvals
In addition to the updated guidance, the SEC is preparing a second document aimed at reducing the lengthy approval process. This change could shorten decision timelines for future ETFs from more than 200 days to around 75. However, this update has not yet been finalized, leaving the Solana ETF in regulatory uncertainty for the time being.
While Fidelity’s filing remains in limbo, other firms have introduced products offering indirect access to Solana’s ecosystem. Last week, REX Financial and Osprey Funds launched a fund that includes exposure to Solana along with staking rewards. This alternative does not require direct approval as a spot ETF but still provides crypto-linked investment options to market participants.
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