The timeline for a spot Solana exchange-traded fund (ETF) may be shorter than anticipated. The Securities and Exchange Commission has requested that prospective issuers respond to comments and refile amended S-1 documents by the end of July, according to individuals familiar with the matter.
Although the SEC has until October 10 to approve or reject such a fund, it appears to be accelerating the process to approve one or more funds ahead of the deadline. This move may be influenced by the recent approval of the REX-Osprey SOL and Staking ETF, which was automatically approved under the Investment Company Act of 1940.
The SSK fund began trading last week, becoming the first Solana staking fund on the market and gaining a first-mover advantage over potential remaining Solana ETFs. The SEC has previously attempted to prevent such advantages by approving multiple spot ether and bitcoin ETFs simultaneously.
A person familiar with the matter noted, 'The SEC is under pressure to approve these funds more quickly, especially given the recent approval of the Rex Shares product.' In June, the Commission asked issuers to amend their S-1 filings for Solana ETFs, including language for in-kind redemption, creations, and staking, marking the first official communication regarding these products. The approval of spot Solana ETFs would introduce a third type of spot crypto fund to the US market, following the approval of spot ether and bitcoin funds. Other outstanding applications include funds tracking the prices of XRP, DOGE, and LTC, among others.