The US Securities and Exchange Commission (SEC) has postponed a decision on Fidelity’s proposed spot Solana exchange-traded fund (ETF), initiating a formal review process. This action triggers a mandatory 21-day public comment window followed by a 35-day rebuttal period.
The delay comes shortly after the SEC issued its first set of official guidance for the review process specifically relating to crypto ETF applications. This guidance places significant emphasis on ensuring applicant transparency and thorough risk disclosure requirements, potentially setting a standard for future crypto ETF submissions.
While direct spot ETF proposals face hurdles, alternative investment strategies are emerging to provide exposure to Solana. Innovative approaches, such as the Osprey-Rex Sol + Staking ETF offering indirect access by holding a basket of tokens associated with Solana, aim to navigate around the regulatory challenges impacting pure spot products.
Concurrently, the SEC is reportedly working on procedural changes intended to potentially shorten the overall ETF approval timeline significantly. Current reviews often exceed 200 days, but the agency seeks to reduce this to approximately 75 days. The Fidelity Solana ETF process, however, remains subject to the established, extended review phase.
These delays underscore the SEC’s continued cautious regulatory posture towards altcoin ETFs. The newly introduced guidance reflects an evolution in the ETF landscape, with the goal of improving transparency while potentially paving the way for a broader range of crypto ETF products beyond Bitcoin and Ethereum in the future.