SEC Delays Decision on Solana ETF Filings, Opens for Public Comments

The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on four proposed Solana exchange-traded funds (ETFs), including the 21Shares Core Solana ETF, Bitwise Solana ETF, Canary Solana Trust, and VanEck Solana Trust. With the delay, the regulatory agency opted to open a public comment period to gather broader input for these ETF filings. 

In its filings , posted on May 19, the SEC stated it was “instituting proceedings” for the proposed ETFs, emphasizing that “institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved.” 

The public comment period aims to solicit feedback on the proposed rule changes, a standard procedure in the SEC’s evaluation process. This delay aligns with the agency’s historical pattern of meticulous scrutiny for crypto ETFs. 

The Canary Solana Trust, sponsored by Canary Capital Group LLC, and the VanEck Solana Trust, backed by VanEck Digital Assets, LLC, join 21Shares and Bitwise in seeking to offer investors exposure to Solana’s native token, SOL, through regulated investment vehicles. 

According to SEC filings, both trusts aim to track the price performance of SOL using benchmarks like the CME CF Solana – Dollar Reference Rate for Canary and the MarketVector Solana Benchmark Rate for VanEck, with shares expected to list on the Cboe BZX Exchange if approved. 

However, the SEC’s hesitation reflects ongoing regulatory uncertainties surrounding Solana, which was previously classified as an unregistered security under former Chair Gary Gensler in 2024.

Beyond 21Shares, Bitwise, Canary, and VanEck, other firms like Grayscale and ProShares are also in the race for a Solana ETF, hoping to capitalize on the blockchain’s growing popularity. 

The SEC’s previous rejection in 2024 for Solana ETF applications from 21Shares, Canary Capital, and VanEck—due to Solana’s classification as an unregistered security—continues to loom large. However, the public comment period could be a turning point, as seen with Ethereum ETFs in 2023, where 60% of comments favouring innovation preceded eventual approval.