Solana ETF Applications Resubmitted, Will the SEC Approve SOL as the Next Spot Crypto ETF?

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Following initial withdrawals, major asset managers have refiled their applications for a spot Solana ETF with the U.S. Securities and Exchange Commission (SEC). These filings, submitted by Bitwise, VanEck, 21Shares, Canary Capital, and Grayscale, have reignited discussions about Solana’s potential to be the next major altcoin to secure an ETF listing.

 

Quick Take

  • Multiple asset managers, including Bitwise, VanEck, 21Shares, Canary Capital, and Grayscale, have refiled their applications for a spot Solana (SOL) ETF.

  • The SEC has restarted its review process, with a response expected by March 14, 2025.

  • Grayscale seeks to convert its $134 million Solana Trust into a spot ETF on the NYSE.

  • The growing stablecoin supply and rising DEX market share on Solana indicate increasing institutional interest.

  • SOL’s price rebounded to $230 amid a $200 million long leverage surge, signaling strong bullish sentiment.

CBOE, Grayscale Revive Spot Solana ETF Applications 

According to Bloomberg ETF analyst James Seyffart, the Cboe BZX Exchange has submitted four 19b-4 applications on behalf of these issuers, restarting the SEC’s 45-day review process. The regulator is expected to provide an initial decision by mid-March. However, historical trends suggest the SEC may request amendments or additional documentation, as seen with prior Bitcoin (BTC) and Ethereum (ETH) ETF applications.

 

Source: X

 

Grayscale’s reapplication is particularly noteworthy, as it aims to convert its existing Solana Trust, which holds approximately $134 million in assets under management (AUM), into a spot ETF. This move reflects growing confidence in Solana’s long-term viability among institutional investors. Compared to Grayscale’s Bitcoin Trust, which saw significant outflows following its ETF conversion, the Solana Trust’s transformation could play a crucial role in shaping market sentiment.

Solana’s Stablecoin Supply and DEX Dominance Fuel Market Growth

Solana stablecoin supply crosses $10 billion in Jan 2025 | Source: Dune Analytics 

 

Beyond ETF developments, Solana’s blockchain has witnessed a sharp increase in stablecoin supply, doubling to $10 billion in January 2025. This surge has been largely attributed to the rising popularity of Solana-based memecoins, including TRUMP and MELANIA, which have contributed significantly to network activity.

 

Solala DEX volumes surge | Source: Dune Analytics

 

Solana has also made substantial gains in the decentralized exchange (DEX) market, surpassing Ethereum in trading volume over the past month. OKX’s recent report highlights that Solana’s DEX market share reached as high as 89.7% in December 2024, driven by low transaction fees and fast processing speeds. Platforms like Jupiter and Pump.fun have fueled this growth, attracting retail investors and bolstering Solana’s reputation as a ‘retail-friendly’ blockchain.

 

Read more: Top Decentralized Exchanges (DEXs) in the Solana Ecosystem for 2025

 

Regulatory Challenges and the Path to a Solana ETF Approval

Despite these positive developments, Solana’s ETF journey remains uncertain due to regulatory challenges. The SEC has previously labeled Solana an unregistered security in ongoing lawsuits against crypto exchanges, including Coinbase and Binance. For a spot SOL ETF to gain approval, the SEC may first need to revise its stance on Solana’s classification and resolve key regulatory disputes.

 

Another potential hurdle is the absence of SOL-based futures products on U.S. exchanges. Historically, the SEC has required at least 18 to 24 months of futures trading before considering an asset for a spot ETF. This requirement has delayed approvals for other altcoin ETFs, and Solana may face a similar timeline.

 

However, political shifts could play a crucial role. Following Donald Trump’s election victory, the appointment of Paul Atkins—a pro-crypto candidate—as the next SEC Chair may usher in more favorable regulatory conditions for cryptocurrency ETFs. Industry insiders speculate that fund issuers are waiting for Trump’s administration to implement its crypto-friendly policies before aggressively pushing for approvals.

 

Solana’s Price Outlook

SOL/USDT price chart | Source: KuCoin

 

Solana’s price has exhibited high volatility amid these developments. After a three-day losing streak, SOL rebounded 3% to reclaim the $230 level, driven by bullish sentiment following the Federal Reserve’s decision to pause interest rate hikes. Data from Coinglass reveals that leveraged long positions in SOL surged past $200 million, outpacing short contracts by more than 50%, indicating strong confidence in further price appreciation.

 

Solana futures’ open interest | Source: CoinGlass

 

From a technical perspective, analysts suggest that SOL’s current trajectory signals a potential local bottom, with key resistance levels at $250 and $281.12. However, if SOL fails to hold above $222, a retest of the $184 support level remains a possibility.

 

Looking Ahead

While Solana’s ETF prospects remain uncertain, the blockchain’s growing institutional adoption, expanding stablecoin supply, and dominance in the DEX market position it as a strong candidate for future ETF approval. The SEC’s response in March 2025 will be a crucial indicator of regulatory sentiment toward Solana and other altcoins seeking ETF status.

 

For now, investors remain cautiously optimistic, keeping a close eye on both regulatory developments and macroeconomic factors that could shape Solana’s trajectory in the months ahead.

 

Read more: What Is Meteora and How Is it Transforming Solana’s Memecoin Ecosystem?

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