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The SEC has extended its review of Solana ETF applications to October 16.
Despite the delay, demand for a Solana staking ETF has been strong so far, despite market volatility.
An approval could set the ball rolling for other altcoin ETFs in the U.S.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on multiple Solana exchange-traded fund (ETF) proposals.
This extension has pushed the deadline to October 16, and comes as investor interest in Solana products continues to grow.
The SEC has delayed its decision on spot Solana ETF applications from Bitwise, 21Shares and Canary Capital. This is the maximum 60-day extension allowed under its procedural rules.
The regulator said it needs additional time to monitor the proposed rule changes and cited issues related to market integrity, investor protection and the “classification”.
In other words, “whether Solana is a security or a commodity”.
The applications were first submitted in January, with initial reviews in March and May. This latest delay means that the Commission has now spent all of its extension options before issuing a final ruling.
While the SEC continues to weigh its decision on spot Solana ETFs, the first U.S. Solana staking ETF is gaining traction.
The demand for Solana staking ETFs has been strong lately | Farside Investors
In particular, the REX Shares Solana Staking ETF (SSK) recorded $13 million in inflows on August 14, along with $66 million in daily trading volume. This marks the highest level of activity since its launch on July 2.
Over just six weeks, the SSK has broken above $150 million in assets under management. This rate of growth shows the rising appetite for Solana-based investment products, even during periods of price volatility.
Despite this demand, Solana’s spot price fell 6% in the past 24 hours to $191, just as the general crypto market experienced a downturn.
The SEC’s review is now focusing on several issues before approving a Solana ETF. These include the risk of market manipulation, the adequacy of surveillance-sharing agreements and whether Solana should be classified as a security or a commodity.
There have also been worries about the concentration of control among a small number of network participants and the overall maturity of the Solana blockchain. Regulators want to make sure that such products operate in a compliant and investor-protected framework before approving.
Shawn Young, chief analyst at MEXC Research, said that the SEC’s review process shows a need to balance innovation with safeguards. He pointed out that regulatory clarity and a mature ecosystem are important for investor confidence.
The new deadline is now being watched closely by both investors and the crypto industry. Market participants are looking to see whether the SEC will approve the proposed ETFs or introduce further conditions.
The decision will determine what happens with Solana’s price and also determine the regulatory framework for other altcoins like XRP and Cardano.
In all, the SEC’s delay in deciding on the Solana ETF proposals shows that while the agency has become more welcoming of digital assets, it is still taking caution very seriously.
The 16 October decision could determine what happens next, not only for Solana but also for the digital asset market as a whole.
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