NEW YORK – Institutional interest in Solana (SOL) is gaining significant momentum as financial giants including Franklin Templeton, Grayscale, VanEck, and Fidelity have submitted revised S-1 filings for spot Solana exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC).
The updated documents, filed as of August 1, are seen by market analysts as a proactive and coordinated effort to align with regulatory expectations, potentially paving the way for the next major crypto ETF approval.
Key Updates Signal Progress in SEC Dialogue
The amended filings reveal that asset managers are actively addressing potential SEC concerns by incorporating more detailed operational structures. These updates are a direct result of ongoing discussions with the Commission and include several key changes:
Staking Provisions: Many proposals now formally include plans for staking SOL held by the funds, allowing investors to potentially earn yield.
Clearer Custodianship: VanEck’s updated filing specifies a dual custodianship model to enhance asset security.
Defined Fee Structures: Grayscale has introduced a proposed 2.5% annual fee, payable in SOL, providing transparency for future investors.
These strategic revisions mirror the successful approach taken during the approval process for spot Bitcoin and Ethereum ETFs, particularly regarding in-kind redemption models, which the SEC recently approved. While a final decision is not imminent, industry watchers speculate that an approval could come as early as late August or September 2025.
Price Reacts Cautiously as Long-Term Outlook Strengthens
Despite the positive regulatory news, Solana’s price experienced a short-term downturn, falling over 3% to close at $170.24. The muted reaction suggests that the market may have already priced in the anticipation of these filings or that traders remain cautious amid broader economic uncertainty.
From a technical standpoint, SOL is facing bearish pressure. The token is currently struggling to maintain its position above the critical support level of $170. If it fails to hold, the next key support zone is at $158. A drop below this could trigger a more significant correction towards $145 or even $130. Conversely, a decisive close above the $180 resistance level could signal a return of bullish momentum.
What a Solana ETF Approval Would Mean for the Ecosystem
While short-term price movements remain volatile, the long-term implications of a spot Solana ETF approval are overwhelmingly positive. A green light from the SEC would:
Legitimize Solana as a mainstream, investable asset class for a wider range of investors.
Increase Market Liquidity by making it easier for institutional and retail capital to gain exposure to SOL.
Drive Institutional Adoption by providing a regulated and familiar investment vehicle.
With over $60 billion in staked SOL and a rapidly maturing ecosystem of applications, Solana is well-positioned to capitalize on the increased accessibility and credibility an ETF would provide. For now, all eyes remain on Washington, but for long-term investors, the recent developments represent a significant step toward unlocking Solana’s full potential.
