SEC Punts Decision Deadlines for Solana ETFs by Two Months

The U.S. Securities and Exchange Commission has pushed back its decision on Cboe BZX’s proposals for Solana exchange-traded funds from Bitwise and 21Shares, invoking its maximum 60-day extension authority to set a final deadline for approval or denial by October 16. Two others from Canary Funds and Marinade Finance have also been delayed.

Issued Thursday under delegated authority by the SEC’s Division of Trading and Markets, the orders use identical language for both filings.

The orders cite the need for “sufficient time to consider” proposed rule changes that would list Commodity-Based Trust Shares for each fund under BZX Rule 14.11(e)(4). That rule sets eligibility, disclosure, and surveillance requirements for exchange-traded products backed by physical commodities.

“Even with market infrastructure for Solana maturing in terms of liquidity, custody solutions, and institutional interest, unresolved concerns around regulatory classification, network stability, and potential concentration of control within the ecosystem are still looming,” Shawn Young, chief analyst at MEXC Research, told Decrypt.

Both proposals were first filed on January 28 and later published in the Federal Register, opening the proposals for public comments and triggering the standard review clock under current rules in the Securities Exchange Act.

A representative from Bitwise declined to comment pending the regulatory decision. The SEC and 21 Shares did not immediately respond to Decrypt’s request for comment.

After an initial extension in March and the opening of formal proceedings from May—when it similarly delayed the decisions—the SEC has now used its final allowable 60-day delay, leaving no further procedural options beyond the new deadline.

“The SEC’s full extension likely stems from Solana’s still-shaky security-or-commodity status, a call that carries far more consequence than any other concern,” Vincent Liu, chief investment officer at Kronos Research, told Decrypt. “Market manipulation and surveillance safeguards are also squarely in play, as both factors will set the tone for all future altcoin ETF bids.”

For markets, this could sharpen positioning around Solana and influence expectations for other altcoin-linked ETFs, which are publicly traded funds designed to track the price of an underlying asset.

“Traders will speculate and stack Solana to front-run the final call, while the deadline sets the stage for other altcoin-linked ETFs, shaping sentiment, and deciding whether Solana becomes the precedent or the pause button for the next wave of products,” Liu said.

Applications for Solana ETFs follow the path set by spot Bitcoin and Ethereum ETFs, using the same Commodity-Based Trust Share framework and leaning on surveillance-sharing arrangements tied to CME Solana futures.

The Solana ETF lineup awaiting a decision has widened in recent months, with additional proposals from Canary Funds and Marinade Finance joining those from Bitwise and 21Shares. 

Other issuers, including ProShares, Grayscale, and VanEck, have made technical amendments to their filings in an effort to align with the SEC’s criteria.

BlackRock, meanwhile, has previously confirmed it has no plans to launch a Solana product yet, with some observers saying it’s likely because the asset management firm is already content with its Bitcoin and Ethereum spot ETFs.

With the final 60 days afforded to the SEC to make its decision, some are optimistic that a Solana ETF could be approved this year.

“We’re expecting standard spot Solana ETFs to be approved by mid-October at the latest, Bloomberg analyst James Seyffart tweeted Thursday.