Solana’s potential for exchange-traded funds (ETFs) in the U.S. could face significant delays, possibly not launching until 2026.
Solana’s potential for exchange-traded funds (ETFs) in the U.S. could face significant delays, possibly not launching until 2026. James Seyffart, an analyst from Bloomberg Intelligence, highlighted these challenges in an interview on Jan. 16, 2025. While there may be movement after President-elect Donald Trump takes office on Jan. 20, Seyffart indicated that the SEC’s approval process could take longer than anticipated, citing the typical review period of 240-260 days for filings.
The situation is further complicated by ongoing lawsuits from the U.S. Securities and Exchange Commission (SEC) against cryptocurrency exchanges, which allege that Solana (SOL) constitutes an unregistered security. This legal challenge has put a pause on other SEC divisions reviewing Solana for approval under a commodities ETF structure. Seyffart emphasized that the SEC’s Enforcement Division classifying Solana as a security prevents other departments from considering it for a commodities ETF.
Despite the likelihood of a delay, Seyffart noted that issuers may begin seeing progress with their Solana ETF filings once Trump’s administration takes office. Trump, who has signaled support for cryptocurrency and promised to create a more crypto-friendly regulatory environment, may appoint leaders who favor the digital asset space. Under the Biden administration, the SEC has been more aggressive with regulatory actions, particularly against cryptocurrencies.
However, the SEC has not given attention to many Solana ETF filings, essentially denying them without acknowledgment. Asset managers have continued to file for various ETFs, including those focused on altcoins such as Solana, Litecoin, and XRP, even though the regulatory approval for these products remains unclear. In addition, proposals for crypto index ETFs, which would hold a basket of digital tokens, are also awaiting approval.
Matthew Sigel, head of digital asset research at VanEck, disagrees with Seyffart’s cautious outlook. In November 2024, Sigel stated that he believed the odds of a Solana ETF being approved before the end of 2025 were very high. He believes that market demand and regulatory adjustments will expedite the approval process.
While Bitcoin and Ether ETFs were approved in 2024, the Solana ETF filings are still facing significant hurdles. As issuers and investors wait, the shifting political landscape and regulatory environment may determine when these financial products can finally be launched.
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