- Solana is gaining strong momentum as a leading candidate for a spot ETF approval, driven by rising DeFi activity, increasing network fees, and growing institutional interest.
- Recent SEC filing requests and large-scale SOL transfers highlight advancing regulatory progress and market confidence ahead of a potential 2025 ETF launch.
Solana (SOL) is gaining momentum as a prime candidate for a U.S. spot exchange-traded fund (ETF), buoyed by surging decentralized finance (DeFi) activity, increasing network revenues, and growing institutional involvement. With recent developments pointing toward regulatory progress, industry observers are closely watching Solana’s trajectory.
The U.S. Securities and Exchange Commission (SEC) has requested amended S-1 filings from ETF issuers, a notable move signaling deeper scrutiny and ongoing dialogue around staking mechanisms. The SEC’s mid-June deadline is widely seen as a pivotal step in advancing Solana ETF proposals.
Also read: GENIUS Act Vote and JP Morgan’s ‘JPMD’ Stablecoin Trademark Signal Major Shift in U.S. Crypto Regulatio
Bloomberg Intelligence recently placed a 90% probability on a Solana ETF gaining approval, citing robust fundamentals and mounting institutional interest. According to DeFiLlama, Solana currently hosts approximately $8.8 billion in total value locked (TVL), reflecting its expanding role in the DeFi sector. It also ranks third in transaction fee revenue, trailing only Tron and Hyperliquid, a testament to the network’s increasing utility.
ETF issuers have begun proactively including staking provisions in their revised filings, addressing what many see as a key concern for regulators. Yet, despite the positive momentum, industry analyst James Seyffart urged caution. “Could theoretically approve the SOL ETFs to launch with staking at same time they approve staking in ETH ETFs,” he noted, adding that final decisions remain uncertain.
Institutional confidence is also being reflected on-chain. A significant transfer of over 252,000 SOL—worth nearly $40 million—from Coinbase Prime to FTX’s cold storage wallet has sparked speculation. While the exact motive remains unclear, such large-scale movements often signal custodial restructuring or positioning ahead of major market shifts, like ETF approvals.
Meanwhile, Solana led all blockchains in bridged net inflows over the past 24 hours, topping $2.5 million. While a minor outflow in stablecoin supply was observed, analysts interpret this as healthy liquidity rotation rather than market retreat.
As Solana continues to cement its place as a top-tier Layer 1 blockchain, its compelling mix of DeFi growth, institutional activity, and regulatory engagement could make it the next digital asset to achieve spot ETF status. Investors will be watching closely as the SEC’s review process unfolds in the coming months.