tl;dr
The SEC has extended its review period by 60 days, setting an October 16 deadline to approve or deny Solana ETF proposals filed by Bitwise, 21Shares, Canary Funds, and Marinade Finance on the Cboe BZX exchange. The delay is due to the need for further examination of rule changes governing Commodity-...
The U.S. Securities and Exchange Commission (SEC) has exercised its full 60-day extension to delay decisions on Cboe BZX’s proposals for Solana exchange-traded funds (ETFs) filed by Bitwise and 21Shares, setting a final deadline of October 16 for approval or denial. Similar delays apply to filings from Canary Funds and Marinade Finance. The SEC cited the need for additional time to review changes required under BZX Rule 14.11(e)(4), which governs Commodity-Based Trust Shares including eligibility, disclosure, and surveillance requirements.
Despite advancements in Solana’s market infrastructure—such as improved liquidity, custody solutions, and increased institutional interest—key regulatory concerns persist. Shawn Young, chief analyst at MEXC Research, highlighted ongoing issues surrounding the classification of Solana’s network, its stability, and potential concentration of control within the ecosystem. These concerns have contributed to the SEC’s cautious approach and the imposition of a final procedural extension.
Since the initial filings on January 28, the SEC’s process has included public commentary periods and prior extensions, with formal proceedings opened in May that further delayed action. Vincent Liu, chief investment officer at Kronos Research, noted that the core regulatory uncertainty focuses on Solana’s security-or-commodity status, a distinction with significant implications for market manipulation and surveillance safeguards. According to Liu, these factors will influence regulatory precedent for future altcoin ETFs and could affect market positioning ahead of the October deadline.
The applications for Solana ETFs follow the established framework used for spot Bitcoin and Ethereum ETFs, relying on Commodity-Based Trust Share rules and surveillance-sharing agreements tied to CME Solana futures contracts. The field of applicants has recently expanded with Canary Funds and Marinade Finance joining the initial Bitwise and 21Shares proposals. Other players, including ProShares, Grayscale, and VanEck, have submitted technical amendments to align with the SEC’s criteria. Interestingly, BlackRock has indicated no current plans to launch a Solana product, possibly focusing instead on its existing Bitcoin and Ethereum spot ETFs.
Market watchers remain cautiously optimistic that an approval could occur before the final October deadline. Bloomberg analyst James Seyffart expressed expectations for standard spot Solana ETFs to be cleared by mid-October, injecting anticipation into how this decision may shape the future of altcoin-linked ETF offerings and the broader cryptocurrency investment landscape.