The U.S. Securities and Exchange Commission (SEC) is showing distinctly positive signals regarding the approval of spot Solana ETFs. The agency has just requested potential issuers to update their S-1 forms within the next week, a move that experts believe could pave the way for licensing in the coming months.

According to three sources close to the matter, #SEC has announced it will provide comments on the amended S-1 forms within 30 days of submission. Notably, the SEC has requested issuers to update language related to physical redemptions and how they approach staking activities. It is noteworthy that the agency appears willing to consider incorporating staking into Solana ETFs.

A source estimates that these updates could help the #ETFSolana funds be approved within the next three to five weeks. James Seyffart from Bloomberg Intelligence is even more optimistic, suggesting that approval could happen as early as July. Seyffart stated: "We believe the SEC may focus on processing the 19b-4 filings for Solana and staking ETFs sooner than expected. The issuers and industry participants have likely been working with the SEC and their cryptocurrency task force to establish rules, but the deadline for the agency to make decisions on such applications is in October."

Cryptocurrency exchange-traded products (ETPs) are managed funds that provide investors access to the spot prices of underlying cryptocurrency tokens. Many issuers are competing to launch a Solana ETF, including major names like Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale.

Grayscale, similar to its moves with its Bitcoin and Ethereum ETFs, is seeking to convert its SOL Trust fund into a spot ETF. Last month, the SEC delayed its decision on Grayscale's Solana ETF, stating it "has not reached any conclusions" on the 19b-4 filing to list the proposed spot ETF.

The agency officially recognized Grayscale's filing in February. At that time, Bloomberg analyst James Seyffart acknowledged this move as "significant" because the SEC had previously "denied" recognition of such filings. Seyffart stated: "We believe that most, if not all [cryptocurrency ETF filings] will be approved this year, with some possibly sooner than others." He also noted that both the filings for Solana and XRP ETFs have had derivative-based ETFs, paving the way for spot approval. "So, I would be completely astonished if the SEC did anything to prevent a spot XRP ETF or Solana ETF from launching," he added.

In April, Bloomberg Intelligence analyst Eric Balchunas stated that they had raised the likelihood of a SOL ETF being approved to 90% from 70%. Ben Strack from Forward Guidance previously reported that the 240-day deadline for these products is in October, meaning the SEC has to make a decision on them. However, sources from Blockworks expressed optimism that the agency's approval of ETFs could come sooner.

In a move seen as positive for potential SOL ETFs, CME launched SOL futures in February. Previously, CME also launched futures markets for both BTC and ETH before their respective ETFs launched, a move that helped the SEC approve these products. As a result, several SOL futures ETFs have launched – including two funds from Volatility Shares. #anhbacong