The U.S. SEC has requested Solana ETF applicants to submit revised S-1 forms within a week, a move that could significantly advance the approval timeline for the Solana ETF to 3-5 weeks. This could merely be the beginning of the upcoming 'Token ETF Summer.'
On June 10, Blockworks reported that the SEC has requested potential Solana ETF issuers to submit revised S-1 forms within the week, a move seen as a significant acceleration in the approval process by industry insiders.
Three informed sources revealed that this move by regulators could shorten the approval timeline for the Solana ETF to 3-5 weeks.
Following the news, the price of the SOL token immediately rose 4%, approaching the $165 mark. This also highlights the market's appetite for institutional-grade cryptocurrency products. Solana is currently the sixth largest cryptocurrency in the world.
It is worth noting that some analyses indicate that the SEC may begin approving some cryptocurrency-related exchange-traded funds as early as next month, thus marking the start of the 'Token ETF Summer.'
SEC's attitude takes a sharp turn
Notably, reports indicate that the SEC has shown an open attitude towards staking features in the document revision requests.
Two sources indicated that regulators requested updates to the wording regarding physical redemption and staking methods, explicitly stating their willingness to include staking as part of the Solana ETF.
This shift in attitude is undoubtedly a significant boon for investors relying on staking returns. The SEC must make a decision by July 2, and Bloomberg analysts have given a 90% approval chance.
Currently, major asset management firms such as Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, and Franklin Templeton have submitted Solana ETF applications to the SEC.
Among them, Grayscale is seeking to convert its SOL trust into a spot ETF, replicating the successful models of its Bitcoin and Ethereum ETFs.
An earlier article from Wall Street View pointed out that Solana initially gained widespread attention due to the support of former cryptocurrency billionaire Sam Bankman-Fried. In 2022, after the collapse of his cryptocurrency exchange FTX and the associated Alameda Research fund, Solana's survival was questioned. However, due to its lower fees compared to competitors, Solana has since made a strong comeback.
The Token ETF Summer is about to arrive
Analysis indicates that the U.S. SEC may begin approving some cryptocurrency-related exchange-traded funds (ETFs) as early as next month, marking the start of the 'Token ETF Summer.'
Bloomberg senior ETF analyst Eric Balchunas posted a report from colleague James Seyffart on social media X on Tuesday, stating that 'ETFs tracking broad cryptocurrency indices may receive SEC approval next month.'
The report indicated that the SEC may also 'act early' on Solana and staking ETF applications, with Balchunas suggesting to 'prepare for a potential altcoin ETF summer, with Solana possibly leading the way.'
Additionally, Duncan Moir, president of 21Shares, stated at the Proof of Talk institutional capital inflow roadmap meeting in Paris that 'basket products will become more interesting' as more asset management firms enter the cryptocurrency ETF competition.
He pointed out that when investors are unsure which cryptocurrency will be the winner, buying a basket of products becomes 'the no-brainer choice.'