- Fidelity SOL ETF has been postponed due to the SEC’s new crypto ETF approval framework.
- Analysts predict that the delay by the SEC could push altcoin ETF approval to Q4.
The SEC has delayed the decision on Fidelity’s spot Solana [SOL] ETF application.
The Solana ETF Faces Another Delay!
The filing was officially noted on July 7th, and the SEC is now in the comment and rebuttal phase under Commodity-Based Trust Shares.
However, there might be further delays for other altcoin ETFs that were initially expected to be approved in the summer.
In a recent post on X (formerly Twitter) by Bloomberg senior ETF analyst James Seyffart, he mentioned that the delay was expected and linked it to the agency’s planned ‘digital asset ETP framework.’
“We’re still waiting for some movement from the SEC on a generalized digital asset ETP framework.”
Source: James Seyffart/X
Potential Extension of Altcoin ETF Approval to Q4
According to reports, the SEC requested issuers to resubmit their amended applications by the end of July. However, Seyffart suggested that approval in Q3 could be likely, but the SEC’s plan might extend the timeline.
“Q3 approval is possible and maybe even likely. But that doesn’t mean it’s imminent.”
Nate Geraci of ETFStore also cautioned that some issuers expect the SEC’s proposed crypto ETF approval guidelines to be operational by Q4.
“Some issuers don’t believe this framework will be fully implemented until early fall. So *no* spot crypto ETF approvals until then.”
As per the SEC’s statement on July 1st, the framework will include additional disclosure requirements.
Already, the conversion of the Grayscale multi-crypto index fund into an ETF has been halted until the framework is in place.
Different Structures for ETFs: Who’s Next in Line?
It’s worth noting that these spot applications are under a different structure (Securities Act of 1933) compared to the approved and live REX-Osprey SOL ETF staking under the Investment Company Act of 1940.
Seyffart anticipated that most altcoin ETFs, including those with staking, would be approved simultaneously.
Notably, Litecoin [LTC], SOL, Ripple [XRP], Dogecoin [DOGE], and Cardano [ADA] ETF filings all have a final SEC decision deadline in October.
Source: Bloomberg
Market Response to SOL
SOL saw a 2% drop from $154 to $147 following the update. Options data indicated range-bound activity in the summer.
In the last 24 hours, the highest volume of call options contracts (bullish bets) was concentrated at $152, $154, and $160 (green bars).
Source: Laevitas
Meanwhile, puts (bearish bets) and potential price floors were at $140 and $144. Options traders anticipated SOL to remain within the $140-$160 range in the near term.
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