In yet another twist for crypto ETF hopefuls, the U.S. Securities and Exchange Commission (SEC) has decided to delay its ruling on the spot Solana (SOL) exchange-traded fund (ETF) proposals submitted by 21Shares and Bitwise. This postponement continues a broader pattern of regulatory hesitation that’s leaving both investors and asset managers in a holding pattern.
The decision, revealed in a filing on the SEC’s website, comes with an added wrinkle—rather than simply pushing the deadline further, the Commission has initiated formal proceedings to further scrutinize the proposals. This move opens up the possibility of an outright rejection if the products fail to meet the agency’s stringent requirements under Section 6(b)(5) of the Exchange Act. In plain terms, the SEC is concerned about whether these ETFs can adequately protect investors from fraud and manipulation, and whether their listing on public exchanges serves the public interest.
A Familiar Story for Crypto ETFs
Bitwise first submitted its Solana ETF proposal in late January, while 21Shares, which already operates Bitcoin and Ethereum ETF products, filed soon after. Both applications were met with initial delays in March, and the current proceedings extend that uncertainty even further.
What’s particularly frustrating for the crypto community is that these delays aren’t new. The SEC has been consistently slow to greenlight spot crypto ETFs—especially those that go beyond Bitcoin and Ethereum. Earlier this month, Grayscale’s Solana ETF also faced a similar delay, underscoring the broader regulatory bottleneck.
The agency’s stance has turned the approval process into a waiting game. As the SEC mulls over whether these products truly meet investor protection standards, some argue that it’s stifling innovation and denying the market access to regulated investment options in emerging digital assets like Solana.
Analysts Remain Upbeat Despite Regulatory Fog
Despite the slowdown, optimism hasn’t vanished completely. Bloomberg’s ETF analysts James Seyffart and Eric Balchunas have assigned a 90% probability for Solana ETF approval—eventually. They place Litecoin ETFs in the same high-likelihood category due to the Commodity Futures Trading Commission (CFTC) classifying them as commodities. XRP, Dogecoin, and Cardano follow with approval odds of 85%, 80%, and 75%, respectively.
Still, analysts and crypto enthusiasts alike acknowledge that this optimism is paired with the reality of slow-moving bureaucracy. Many now expect final decisions to trickle in around late 2025, a timeline that leaves plenty of room for frustration—and volatility.
Solana’s Price Stalls Amid Uncertainty
Market response to the SEC’s announcement has been relatively muted. As of the latest data from CoinMarketCap, Solana is trading at $164.98, down around 1.28% in the past 24 hours. While institutional interest continues to rise—bolstered by CME Group’s recent launch of Solana futures—the spot price doesn’t yet reflect that enthusiasm.
Technical indicators suggest there may still be some upside potential. The relative strength index (RSI) currently sits near 55, indicating mildly oversold conditions. If broader market sentiment turns positive, SOL could stage a mid-term recovery, particularly if there are favorable developments from regulators.
Final Thoughts
The SEC’s extended review of Solana ETF proposals adds another layer of uncertainty to an already cautious crypto investment landscape. While optimism remains in parts of the industry, the slow pace of regulatory clarity could continue to suppress near-term momentum. For now, investors and asset managers will have to watch and wait—again.
