The United States Securities and Exchange Commission (SEC) has requested potential fund managers looking to offer spot Solana (SOL) exchange-traded funds (ETFs) to update their S-1 forms within the next week. According to sources familiar with the situation, the SEC plans to provide feedback on the revised S-1 submissions within the next 30 days.
The SEC has reportedly asked the potential spot Solana ETF issuers to revise their submissions regarding in-kind redemptions and update their filings related to the staking approach.
Several fund managers, including Fidelity Investments, Grayscale Investments, VanEck, Franklin Templeton, 21Shares, Canary Capital, and Bitwise Asset Management, are said to be seeking to offer spot Solana ETFs.
The recent actions taken by the U.S. SEC suggest a strong possibility of the approval of a spot Solana ETF, potentially by July. In light of this development, Polymarket traders now estimate a 91 percent likelihood of a spot Solana ETF being approved by the end of the year.
The SEC’s willingness to establish clear regulations for cryptocurrencies has attracted more institutional investors to the digital asset and Web3 space.
Following the news, the price of SOL surged over 5 percent on Tuesday, reaching around $164 during the mid-North American trading session. With a fully diluted valuation of approximately $98 billion and a 24-hour average trading volume of about $4.2 billion, SOL has been exhibiting a bullish fractal pattern similar to Ethereum (ETH) as FOMO among crypto traders continues to rise.
Crypto analyst Ali Martinez suggests that SOL price is poised for a parabolic upsurge in the near future. Additionally, on-chain data indicates that institutional investors, particularly SOL Strategies, have been actively accumulating more SOL recently.