Analysts say the outlook for the Solana ETF is positive, but it is unlikely to be approved next week

On June 13, seven asset management companies submitted applications for the Solana spot exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC), indicating a strong momentum for altcoin ETFs. However, Bloomberg ETF analyst James Seyffart warned that, despite optimistic attitudes among market participants, swift approval is unlikely. In a post on X, Seyffart pointed out that any green light would require repeated discussions from regulatory aspects before it can be achieved. "If anyone remembers the rollout of the Bitcoin ETF, they would notice that there were a lot of applications in the months leading up to it," he wrote. The spot Bitcoin ETF was finally approved in January 2024, while the Winklevoss twins of Gemini first filed their application in 2013, which has now been over a decade. The staking provisions in the Solana filings have drawn significant attention. Documents submitted by major players such as Fidelity Investments, 21Shares, Franklin Templeton, Grayscale, Bitwise, Canaccord Genuity, and VanEck all include provisions related to staking, which has become a regulatory focus. Fidelity submitted a new S-1 form, while other companies modified previously submitted documents. VanEck initiated the first U.S. Solana ETF application in early June 2024 and ultimately submitted a revised version. Seyffart confirmed, "I believe all the bills contain provisions related to staking." Although previous approval experiences for Bitcoin and Ethereum ETFs may help expedite the process, he emphasized that staking remains an unresolved issue, and there are currently no precedents.

The SEC is also reviewing proposals to add staking functionality to the already approved spot Ethereum ETFs. The staking feature allows holders of proof-of-stake (PoS) cryptocurrencies like Solana and Ethereum to earn rewards, raising questions about whether this constitutes a securities issuance—a gray area that regulators have yet to clearly define.

SOL and ETH ETFs may make staking decisions together

Seyffart speculated that Solana and ETH ETFs might receive staking approval simultaneously. "In theory, they could launch the staking feature at the same time."