The U.S. Securities and Exchange Commission (SEC) acknowledged multiple Solana-based exchange-traded funds (ETF) filings on Tuesday, signaling progress toward potential approval. Several issuers, including 21Shares, Bitwise, Canary Capital, and VanEck, submitted proposed rule change forms through Cboe BZX Exchange to list and trade shares of spot Solana ETFs.
SEC Advances Solana ETF Filings
The filings mark a significant step forward for Solana-based ETFs, as similar applications had been previously rejected. Tuesday’s developments come after Cboe BZX Exchange initially submitted forms last month for the same issuers. The SEC’s acknowledgment follows a process similar to that seen during the approval of spot Bitcoin ETFs.
Franklin Templeton has also taken steps toward launching a Solana ETF. On Tuesday, the firm filed documents in Delaware to register the Franklin Solana Trust. The filing suggests growing institutional interest in Solana-based financial products.
The SEC recently started soliciting public comments on a proposal to list and trade shares of the Grayscale Solana Trust. The SEC’s review process for Solana ETFs includes a
Canary Capital CEO Steven McClurg explained that his firm aims to file ETF applications for assets with clear utility. The firm has focused on Solana, XRP, Litecoin, and HBAR while avoiding cryptocurrencies like Dogecoin. The approach aligns with growing institutional interest in utility-driven digital assets.
Analysts Estimate High Approval Odds for Spot Crypto ETFs, Including XRP and Solana
Bloomberg ETF analysts James Seyffart and Eric Balchunas had projected strong approval odds for upcoming spot exchange-traded funds (ETFs) tracking cryptocurrencies such as Litecoin, Solana, XRP, and Dogecoin. The analysts stated on Monday that regulatory conditions have shifted favorably for these digital assets, increasing the likelihood of approval for related ETFs.
According to Seyffart and Balchunas, Litecoin ETFs currently have the highest probability of securing approval. The analysts assigned a 90% chance of approval for filings by Canary Capital and Grayscale.
https://x.com/JSeyff/status/1889035896428663261
Dogecoin ETFs follow with a 75% probability, while Solana ETFs are estimated to have a 70% likelihood. XRP ETF filings, including recent submissions from Cboe BZX Exchange on behalf of Bitwise, 21Shares, and Canary, were given a 65% probability of approval.
The analysts stated that the regulatory landscape has changed significantly since the November U.S. presidential election. Before the election, approval odds for most of these ETFs were estimated at below 5%. The shift in probability is attributed to recent government actions supporting cryptocurrency growth and an evolving stance from the U.S. Securities and Exchange Commission (SEC).
Regulatory Landscape Shifts Under Trump Administration
Since Donald Trump assumed office last month, the federal government has moved toward a more crypto-friendly stance. This shift has encouraged multiple issuers to submit applications for spot crypto ETFs beyond Bitcoin and Ethereum. Last year, the SEC approved spot Bitcoin ETFs, followed by the approval of spot Ethereum ETFs.
The SEC’s evolving stance on crypto ETFs coincides with the formation of a dedicated crypto task force led by Commissioner Hester Peirce. Peirce emphasized that regulatory clarity remains a work in progress, acknowledging the risks and opportunities in the sector. The task force aims to provide a structured framework for evaluating future crypto investment products.
Republican Commissioner Hester Peirce has been appointed to establish a clear regulatory framework for digital assets. The analysts indicated that the SEC’s ongoing evaluation of crypto-related securities and commodities classifications will influence regulatory decisions regarding these ETFs.
XRP ETF Approval Linked to SEC Litigation
The analysts noted that XRP ETF approvals remain uncertain due to unresolved litigation between Ripple and the SEC. Seyffart stated that until legal matters surrounding Ripple and XRP reach a definitive outcome, the SEC may delay any decision regarding spot XRP ETFs.
Approval processes for the proposed ETFs are expected to advance as regulatory filings are reviewed. The SEC may acknowledge filings for XRP and Dogecoin ETFs within the week, marking a critical step in the approval process. Further regulatory clarifications are anticipated by the end of 2025.
Cardano ETF Proposal Surfaces
In a separate development, Grayscale Investments has filed for a Cardano (ADA) ETF, with NYSE Arca submitting the necessary 19b-4 form. The move positions Cardano among the growing list of cryptocurrencies seeking ETF approval. Cardano’s price surged following the announcement, reflecting market anticipation surrounding its potential listing.
Grayscale Investments has expanded its crypto-based investment products by filing for a spot Cardano (ADA) exchange-traded fund (ETF). The application, submitted through NYSE Arca via a 19b-4 form, seeks regulatory approval for listing and trading shares of the proposed ETF.
The firm has been actively working to convert its existing trusts into spot ETFs, including filings for Solana (SOL), Ripple (XRP), and Dogecoin (DOGE). With over 20 crypto-related investment products under management, Grayscale has positioned itself at the forefront of cryptocurrency-based financial instruments. The Cardano ETF, if approved, would mark the first standalone investment product for ADA in the U.S. ETF market.
Regulatory Considerations and Market Reaction
Following the announcement of Grayscale’s filing, Cardano’s price surged nearly 10% within 24 hours, outperforming Bitcoin and Ethereum during the same period the ADA community enjoyed the filling. ADA traded at approximately $0.76, reflecting increased investor interest in the proposed ETF.
https://x.com/TheKingTigerz/status/1889327065603748021
However, regulatory challenges remain. The U.S. Securities and Exchange Commission (SEC) has previously labeled Cardano, XRP, and Solana as unregistered securities in cases against Binance and Coinbase.
While recent leadership changes suggest a more favorable stance toward cryptocurrency, the SEC’s determination could impact the approval process for Solana-based products. The classification remains a potential hurdle for issuers seeking approval.
The SEC’s cautious approach toward crypto-based ETFs has been a regulatory hurdle. However, with increasing filings and growing institutional interest, regulatory pressure may lead to broader acceptance. The approval of a Cardano ETF could mark a milestone in ADA’s integration into traditional finance.
