Solana ETF leads the way, will more digital coin ETFs be approved by the US SEC next month?

The SEC has requested potential Solana ETF issuers to submit revised S-1 forms within the next week, a move seen as a significant acceleration of the approval process.

Written by: Dong Jing

Source: Wall Street Journal

On June 10, Blockworks reported that the SEC has asked potential Solana ETF issuers to submit amended S-1 forms within the next week, a move seen by industry insiders as a significant acceleration of the approval process.

Three insiders revealed that this move by regulators could shorten the approval time for the Solana ETF to 3-5 weeks.

After the news broke, the price of SOL tokens immediately rose by 4%, approaching the $165 mark. This also highlights the market’s desire for institutional-grade cryptocurrency products. Solana is currently the sixth largest cryptocurrency in the world.

What’s more worth noting is that some analyses indicate that the SEC may start approving some cryptocurrency-related exchange-traded funds as early as next month, thus marking the beginning of the “token ETF summer.”

SEC’s Attitude Takes a Sudden Turn

According to reports, what is more striking is that the SEC has shown an open attitude towards the staking feature in its document revision requests.

Two sources said that regulators are asking for updates to the wording regarding physical redemption and staking methods, and have clearly indicated 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 rewards. The SEC must make a decision by July 2, and Bloomberg analysts have given a 90% approval probability.

Currently, major asset management companies such as Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, and Franklin Templeton have submitted Solana ETF applications to the SEC.

Grayscale is seeking to convert its SOL trust into a spot ETF, replicating the successful model of its Bitcoin and Ethereum ETFs.

Previous articles from Wall Street Watch pointed out that Solana initially garnered 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 called into question. However, due to the lower fees it charges compared to competitors, Solana subsequently made a strong comeback.

Token ETF Summer is Coming

Some analysts suggest that the U.S. Securities and Exchange Commission may start approving some cryptocurrency-related exchange-traded funds (ETFs) as early as next month, marking the beginning of the “token ETF summer.”

Bloomberg senior ETF analyst Eric Balchunas posted a report from colleague James Seyffart on social media platform X on Tuesday, stating that “ETFs tracking broad cryptocurrency indices may receive SEC approval next month.”

The report indicates that the SEC may also “take early action” on Solana and staking ETF applications, with Balchunas stating to “be prepared for potential altcoin ETFs this summer, with Solana possibly leading the way.”

Additionally, Duncan Moir, President of 21Shares, stated at the Proof of Talk institutional capital inflow roadmap meeting held in Paris that as more asset management companies enter the cryptocurrency ETF competition, “basket products will become more interesting.”

He pointed out that when investors are unable to determine which cryptocurrency will be the winner, buying a basket of products becomes a “no-brainer choice.”