The US SEC has started the official countdown for Solana ETF application from Canary Capital.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
In a significant move, the US Securities and Exchange Commission (SEC) has acknowledged the Solana ETF application from Canary Capital. This development, announced in a recent filing from the regulator, marks another step in the growing push to launch an Exchange-Traded Fund (ETF) for Solana SOL $125.9 24h volatility: 0.0% Market cap: $64.59 B Vol. 24h: $2.22 B .
With this acknowledgment, the official countdown for the approval of the product has started. The regulator will have a maximum of 240 days to either approve or deny.
The race to launch a Solana ETF began last June when VanEck became the first to submit a proposal. Since then, other major financial institutions have followed suit. Last year, Coinspeaker reported that Grayscale officially filed for the Solana ETF.
The acknowledgment of Canary Capital’s filing came after the regulator acknowledged Grayscale’s Solana ETF filing earlier this month. Notably, the acknowledgment proves the latest advancement in the race by top asset managers to bring SOL-based investment products to the market. Despite the early positive signs, the unclear securities status of Solana might impede the process moving forward.
Franklin Templeton, a major asset management firm, has also taken a step toward joining the SOL ETF race. The firm recently registered a Solana Trust entity in Delaware, a move that suggests it may also file for a full-blown ETF in the coming months.
While Franklin Templeton has not made an official announcement, its registration aligns with the pattern seen in previous ETF launches. Notably, firms like Bitwise, 21Shares, and WisdomTree have signaled their interest in similar digital investment offerings.
Additionally, asset managers have filed for ETF products focusing on altcoins like Dogecoin DOGE $0.17 24h volatility: 2.8% Market cap: $24.76 B Vol. 24h: $973.44 M , Litecoin LTC $85.12 24h volatility: 1.4% Market cap: $6.46 B Vol. 24h: $278.15 M , XRP $2.11 24h volatility: 3.5% Market cap: $122.64 B Vol. 24h: $3.03 B , Cardano ADA $0.66 24h volatility: 3.4% Market cap: $23.71 B Vol. 24h: $535.96 M , among others. Analysts have continued to evaluate the prospects of these applications as the crypto ETF race heats up.
Bloomberg analysts have recently hinted that there is now a 70% chance that a SOL ETF will be approved, though the exact timeline remains uncertain.
Despite the high odds, the biggest challenge to approving the ETF is the regulatory status of SOL itself. The SEC has repeatedly categorized Solana as security in past lawsuits. This has created uncertainty around whether a Solana ETF can gain approval under existing regulations. If the SEC maintains this classification, it could complicate or delay the launch of Solana or other investment products.
Even with the SEC acknowledging the latest SOL ETF filing, Solana’s price has not moved in tandem.
At the time of writing, SOL price was down 3.08%, and trading at $196.10. This suggests that investors are not convinced this Canary Capital Solana ETF acknowledgment will make much difference. However, Coinspeaker noted that Solana is set for a rebound based on market conditions.
While some investors see the ETF push as a bullish sign for Solana’s long-term adoption, regulatory risks continue to weigh on the market.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
