Asset Managers Race Ahead with Updated Solana Filings
A flurry of amended S-1 forms hit the Securities and Exchange Commission late last week,
revealing that Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and
Canary Capital have all refreshed their proposals for spot Solana exchange-traded funds.
ETF analyst Nate Geraci flagged the coordinated push in a post on X and suggested that the agency
could hand down approvals as early as mid-October. If that timeline holds, October would
cement itself as the most decisive month for digital-asset products since the approval of
the first spot bitcoin ETFs in January.
The latest drafts are notable for two reasons. First, they tighten language around market
surveillance and custody—areas that historically slow the SEC’s review process. Second,
most include explicit provisions for on-chain staking. Opening the door to staking inside
a U.S. ETF would mark a regulatory first, potentially allowing investors to capture Solana’s
native yield while maintaining the familiarity of a brokerage account. Market observers view
the staking clause as an indirect bellwether for future Ethereum products, where similar
yield mechanics have been hotly debated.
Why October Matters
The SEC faces clustering final deadlines for roughly ninety crypto-linked funds, many of
which target alternative layer-one assets such as Solana, XRP, and Litecoin. Staff resources
are finite, and grouping decisions reduces administrative overhead—hence October’s outsized
importance. Issuers have responded by synchronizing amendments, ensuring that each filing
addresses risk disclosures the Commission flagged in earlier comment letters. The result is
an unusually unified front of heavyweight asset managers, all betting that a regulatory window
is now open.
Staking Language Signals Shift Toward Yield-Bearing Crypto Funds
Including staking within an ETF structure could blur the line between traditional passive
exposure and active yield generation. For institutional allocators, that added cash flow
transforms SOL from a pure price-appreciation play into a total-return asset—closer to a
dividend-paying equity than to a non-yielding commodity. Early evidence suggests appetite
is strong: a recently launched Solana staking ETF on the Cboe BZX Exchange recorded
33 million USD in trading volume and 12 million USD in first-day inflows despite minimal
marketing. Europe offers a longer data set; Bitwise’s Solana staking ETP attracted roughly
60 million USD over five sessions, underscoring pent-up demand for yield in a persistently
low-rate environment.
For Ethereum, the implications are pronounced. Ether spot ETFs approved in May purposely
sidestepped staking, largely to expedite launch. If regulators allow it for Solana—
an asset with a shorter track record and higher volatility—it becomes difficult to justify a
continued ban on ETH staking. Several issuers have already drafted supplemental statements
outlining how validator rewards would be distributed and taxed, signalling readiness to pivot
the moment the SEC shifts its stance.
Broader ETF Landscape: Bitcoin Loses Steam While Altcoins Rise
Bitcoin products still dominate in absolute terms—collectively holding more than
1.47 million BTC, roughly seven percent of the circulating supply. Yet the growth curve
is flattening. August saw 301 million USD in net outflows from bitcoin ETPs, while Ethereum
funds absorbed nearly 4 billion USD. Trading desks report that several “whale” accounts have
rotated sizable tranches from BTC into ETH in anticipation of yield-enabled ETFs and the
historically soft September for bitcoin price performance.
The shift in capital flows tells a broader story: investors are moving down the risk curve
in search of differentiated returns. Solana, with its combination of high throughput,
under-owned status, and potential staking yield, fits that narrative neatly. Should the SEC
approve even a subset of the pending Solana ETFs, capital could migrate faster than it did
following the January bitcoin ETF debut, because the plumbing—brokerage connectivity,
market-maker readiness, and index inclusion criteria—is already in place.
In short, the crypto ETF race is no longer a single-asset contest. October’s docket will
reveal whether regulators are willing to expand the playbook beyond bitcoin and vanilla
ether exposure. If they do, a new generation of yield-bearing, multi-chain products could
redefine how both retail and institutional investors access the digital-asset market.
