Spot Solana ETF Delayed as SEC Continues to View SOL as a Security

The U.S. Securities and Exchange Commission (SEC) has delayed the approval process for spot Solana ETFs due to ongoing concerns about whether Solana (SOL) should be classified as a security. This delay has affected filings from VanEck and 21Shares, which sought approval for their proposed ETFs.

Filing Withdrawals

The 19b-4 filings necessary for ETF approval, submitted by Cboe BZX on July 9, were recently removed from the Cboe website and the Federal Register. The withdrawal has raised questions about the potential classification of Solana as a security. Without these filings, the SEC is not under the same pressure to issue a ruling within a specified timeframe.

Approval Process

For the ETFs to proceed, both the 19b-4 forms and S-1 registration statements must be approved. While VanEck’s S-1 statement is still active in the SEC’s EDGAR system, 21Shares’ S-1 filing is no longer searchable, though it remains accessible through a direct link.

Market Context

The delay comes amid a broader interest in cryptocurrency ETFs, including those for Bitcoin and Ethereum. Historically, futures products have preceded the introduction of spot ETFs, and a similar pattern is expected for Solana. The regulatory environment remains uncertain, particularly following the SEC’s recent settlement with Ripple, which imposed a $125 million fine without fully classifying XRP as a security.