SEC Pushes Back on Solana ETF Approvals Amid Ongoing Crypto Regulatory Review

The SEC delayed Solana ETF proposals to examine market risks and protect investor interests.

Bitwise and 21Shares must wait longer as the SEC continues its review of their Solana ETF plans.

The SEC seeks more feedback before deciding on Solana ETFs causing further delays for crypto investors.

The US Securities and Exchange Commission has delayed its decision on two proposals for Solana-based exchange-traded funds. This move affects filings submitted by Bitwise and 21Shares. The proposals aim to list ETFs tracking the price of Solana, a popular blockchain token.

New Round of Proceedings Launched

The SEC has announced that they will begin another round of evaluation for the applications. The SEC is reviewing if the proposals follow the rules set by the Securities Exchange Act. The main worries are related to attempts to influence prices unfairly and to ensure investors are protected. These criteria must be addressed before any approval can occur.

Both Bitwise and 21Shares have previously launched crypto investment products. 21Shares already operates approved ETFs for Bitcoin and Ethereum. However, no Solana-linked fund has received authorization in the US so far. This delay signals a more cautious approach by the SEC.

Broader Policy Review Delays Decisions

During the past few months, the SEC has delayed the approval of several digital asset ETFs. The regulator wants to ensure careful consideration of relevant laws and policies. The process also involves asking for public opinion and conducting more analysis. According to the agency, the delays in providing a decision do not show that approval or rejection has yet been decided.

Bitwise filed its application through the Cboe BZX Exchange in January. 21Shares submitted its proposal separately. Both have now experienced repeated delays. The SEC has not provided a timeline for its next steps. However, industry watchers expect a prolonged review period.

Growing Interest Meets Regulatory Inertia

The SEC’s latest delay reflects a broader bottleneck in crypto ETF approvals. Applications involving various digital assets remain under review. These include funds based on meme coins, non-fungible tokens, and other blue-chip cryptocurrencies. Asset managers have submitted numerous proposals since late 2024. They hope to capitalize on shifting regulatory attitudes and increased political support.

There are indications that the current administration in the US is supportive of crypto technology. However, changes in regulations are still happening at a slow rate. The SEC stated that it has not reached a decision on any of the applications yet. The agency continues to encourage public feedback on rule change proposals.

Industry Eyes Approval in Late 2025

Despite delays, analysts remain optimistic. Many expect approvals for Solana and similar ETFs by late 2025. Analysts cite increased institutional interest and clearer asset classifications as reasons for potential acceptance. However, the ongoing review process suggests further waiting is likely.