Approval for Four Solana ETFs Gets Delayed Again

The SEC has delayed decisions on several Solana ETF applications again, creating uncertainty for investors. Four proposals have been postponed, with no clear explanation from the regulator. Although demand for a Solana ETF remains high, the delays reflect the SEC’s careful review of new digital asset products.

Solana ETF Faces Continued Delays

Optimism around a Solana ETF has been growing for several months, driven by announcements and filings from various investment firms. However, each wave of excitement has been followed by further delays. Recent filings show that the Bitwise Solana ETF and the 21Shares Core Solana ETF, along with others, will need additional time for review. All four products plan to list and trade shares on the Cboe BZX Exchange under its Commodity-Based Trust Shares rule.

Analysts like James Seyffart say that such delays are not unusual for the SEC. Even in a regulatory climate that appears more welcoming to cryptocurrencies, new or unconventional products can face prolonged review. Previous Solana ETF submissions by major firms, including Grayscale and Fidelity, have faced similar hurdles, suggesting that these delays are part of an institutional process rather than a reflection of the individual projects.

The SEC noted in its filings that it requires enough time to evaluate the proposed rule changes and associated issues. As a result, Solana investors have had to manage their expectations as the approval process extends further into the fall.

Why the SEC Is Delaying?

Identifying the precise reason for these delays is difficult, though several factors provide some clarity. Commissioner Caroline Crenshaw, known for her cautious approach to crypto products, has influenced the pace of approvals. While she cannot stop them outright, her stance limits colleagues’ ability to accelerate decisions, effectively lengthening review times.

The SEC has also shown a pattern of delaying new or untested products. A recent example is a basket ETF that included Solana. The Commission approved it one day and then issued a stay order the next. This highlights the careful balance regulators try to maintain between fostering innovation and protecting investors.

Other explanations may involve updates to approval processes or changes in evaluating digital asset risks. The mid-October deadline still stands, offering a clear timeline. Until then, the result of these Solana ETFs is uncertain and will stay in focus for both retail and institutional investors.

What Does It Mean for SOL?

Solana’s price has been affected by repeated delays. Currently, SOL trades near $196, down from highs close to $210 earlier in the week. Coinglass reports around $72 million in SOL liquidations in the past 24 hours. Part of this shift comes after U.S. inflation data exceeded expectations, with the July Producer Price Index rising 0.9% for the month and 3.3% annually, above the projected 2.5%.

Digital assets are being impacted by the current economy, particularly those linked to ETFs. Investors are following updates carefully, aware that SEC decisions could influence Solana’s performance. ETFs for XRP, Dogecoin, and other cryptocurrencies are also attracting attention as regulated crypto gains interest. All eyes are now on mid-October, when the SEC must make its decision. Until then, market movements will continue to respond to sentiment, broader economic indicators, and regulatory developments.

What to Expect Next?

Investors may need to remain patient while the SEC conducts its thorough review of the Solana ETF proposals. Although delays can be frustrating, they demonstrate the regulator’s careful approach to new digital asset products and its focus on balancing innovation with investor protection.

For now, SOL is expected to remain sensitive to regulatory updates and broader economic trends. The mid-October deadline provides a clear milestone, and developments before it could influence Solana’s price and trading activity.