Fidelity Solana ETF Faces Another SEC Delay as Regulators Review Framework

The Securities and Exchange Commission has once again delayed Fidelity's Solana ETF application, marking another setback for crypto exchange-traded fund approvals. The regulatory body confirmed the delay on July 7, 2025, as part of its ongoing review of cryptocurrency investment products.

SEC Initiates Formal Review Process for Solana ETF

The SEC has officially begun reviewing Fidelity's Solana ETF proposal, which was filed through Cboe BZX Exchange as part of a proposed rule change. The regulator has opened a public comment period lasting 21 days, with an additional 35 days allowed for rebuttals following publication in the Federal Register.

This development affects the Fidelity Solana Fund, which would provide investors with direct exposure to Solana's native token. The delay comes as the SEC works to establish clearer guidelines for cryptocurrency-based exchange-traded products.

Market Analysts Expected the Delay

Industry experts had anticipated this regulatory pause. Bloomberg ETF analyst James Seyffart described the move as "expected," noting that the decision highlights how far the SEC remains from approving spot crypto ETFs tied to alternative cryptocurrencies beyond Bitcoin and Ethereum.

The delay underscores the incomplete regulatory framework surrounding altcoin ETFs. Without clear guidelines, products like the Solana ETF continue to face uncertainty in the approval process.

SEC Introduces New Crypto ETF Guidelines

The regulatory delay coincides with the SEC's release of its first formal guidance on crypto exchange-traded products. This guidance represents a significant shift under the current Republican-majority commission and establishes new standards for crypto ETF applications.

The updated guidelines require asset managers to provide clear explanations of risks, custody structures, and unique characteristics of crypto-based ETFs. All explanations must be written in "plain English" to ensure both investors and regulators understand the products' distinctive features.

Streamlined Approval Process Could Reduce Wait Times

The SEC is developing a second document that could dramatically accelerate future ETF approvals. This update may reduce approval times from over 200 days to approximately 75 days, potentially benefiting numerous pending crypto ETF applications.

However, the Solana ETF and similar products remain in regulatory limbo while these framework changes are implemented. Multiple filings for other cryptocurrency ETFs, including XRP and meme coin products, also await regulatory clarity.

Alternative Approaches Emerge in Market

While direct Solana ETF approval remains uncertain, some firms are pursuing alternative strategies. REX Financial and Osprey Funds recently launched the REX-Osprey Sol + Staking ETF, offering investors indirect exposure to the Solana network and its staking rewards.

This product demonstrates how financial firms are finding creative ways to provide Solana exposure while navigating regulatory challenges. The staking ETF structure allows investors to participate in Solana's ecosystem without requiring direct SEC approval for a spot ETF.

Broader Impact on Crypto ETF Market

The Solana ETF delay reflects broader challenges facing the cryptocurrency ETF market. While Bitcoin and Ethereum ETFs have gained approval, altcoin products face additional scrutiny from regulators concerned about market manipulation and investor protection.

The SEC's cautious approach to altcoin ETFs contrasts with its more receptive stance toward established cryptocurrencies. This regulatory environment creates uncertainty for asset managers seeking to launch products tied to newer blockchain networks.

What This Means for Investors

Investors interested in Solana exposure through traditional investment vehicles must continue waiting for regulatory clarity. The public comment period provides an opportunity for industry stakeholders to influence the SEC's decision-making process.

The delay also highlights the importance of regulatory frameworks in cryptocurrency investment product development. Clear guidelines could accelerate approval processes and provide greater certainty for both asset managers and investors.

Looking Ahead

The Solana ETF's future depends on the SEC's completion of its crypto ETF framework and the outcome of the public comment period. Industry observers will closely monitor regulatory developments and their impact on pending cryptocurrency ETF applications.

As the SEC continues refining its approach to crypto investment products, the Solana ETF serves as a test case for how regulators will handle altcoin-based financial products in the evolving digital asset landscape.