The SEC has officially postponed its decision to approve Bitwise and 21Shares' Solana ETF until October 16, 2025, amidst ongoing uncertainty regarding its legal classification.
The U.S. Securities and Exchange Commission (SEC) has officially extended the decision deadline for Solana ETF proposals by 60 days, pushing the final deadline to October 16, 2025. This decision affects the filings of Bitwise and 21Shares submitted through the Cboe BZX exchange, along with similar proposals from Canary Funds and Marinade Finance.
The extensions were issued on August 14 under the delegated authority of the SEC Division of Trading and Markets, citing the need for 'sufficient time to review' changes to the listing rules for Commodity-Based Trust Shares under BZX Rule 14.11(e)(4). This regulation imposes strict standards regarding eligibility requirements, disclosure obligations, and oversight mechanisms for ETF products backed by physical commodities.
This is the third extension since the initial filing was submitted on January 28, 2025. The process has undergone extension milestones in March and May, before the SEC exercised its maximum 60-day extension in August. This means that the regulator has no further options for delay and must make a final decision in October.
Legal challenges and market outlook
Vincent Liu, Chief Investment Officer at Kronos Research, stated that the core issue is 'the unclear legal status of Solana' – a factor that outweighs other concerns about market manipulation and oversight mechanisms. The classification of SOL as a security or commodity remains an open question, impacting not only the Solana ETF but also the overall outlook for altcoin ETF products in the future.
However, Bloomberg analyst James Seyffart remains optimistic, predicting that the standard spot Solana ETF will be approved by mid-October at the latest. The current filings use a Commodity-Based Trust Share structure similar to the approved Bitcoin and Ethereum ETFs, while relying on a surveillance-sharing agreement with Solana futures on the CME.
In addition to Bitwise and 21Shares, the Solana ETF race also includes several other major players such as ProShares, Grayscale, and VanEck, all of whom have adjusted their filings to better meet SEC requirements. Notably, BlackRock – the successful issuer of Bitcoin and Ethereum ETFs – has confirmed it has no plans to enter the Solana ETF market, possibly due to satisfaction with its current product lineup.
