U.S. SEC Delays Decision on 21Shares and Bitwise Solana ETFs

Less than a week after the United States Securities and Exchange Commission (SEC) delayed its decision on the Grayscale Solana exchange-traded fund (ETF) application, the agency has done the same for other proposals.

According to a filing by the Commission, the SEC has delayed applications from asset managers Bitwise and 21Shares to launch Solana ETFs on Cboe’s BZX Exchange.

SEC Delays More Solana ETF Applications

As the SEC did with Grayscale’s application last week, the agency has instituted proceedings to determine whether the ETF proposal complies with regulatory guidelines. The proceedings will enable the SEC to ensure the application is designed to protect users by preventing fraudulent and manipulative practices.

The SEC has called for public opinion and will reveal by the next deadline whether it has decided to approve or deny the applications.

“…in addition to any other comments they may wish to submit about the proposed rule change. In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold SOL, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission,” the SEC stated.

Despite having approved Bitcoin and Ethereum spot ETFs in 2024, the SEC seems hesitant to give the green light to Solana funds. The altcoin has witnessed high demand for investment products tied to it, but the Commission has taken a cautious approach to such proposals.

High Chance of Solana ETF Approval

In addition to Solana, the SEC is delaying decisions on ETFs linked to other cryptocurrencies, including XRP, Dogecoin, Litecoin, Cardano, Avalanche, and Polkadot.

Even as the SEC keeps several altcoin ETFs pending, market experts believe the odds of the agency approving the funds, especially Solana, are high. Bloomberg analysts revealed in late April that the regulatory agency has a 90% chance of approving Litecoin and Solana ETFs this year.

There is also an 85% chance that the Commission will approve XRP ETFs, and 80% odds that Dogecoin funds will see the light of day before the year runs out. As for Polkadot, Cardano, and Avalanche, their odds sit at 75%.

Meanwhile, a Solana-backed fund bet on the crypto prediction platform Polymarket shows the SEC has an 84% chance of approving the products in 2025.

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