Solana (SOL) jumped 5% in U.S. after-hours trading on Tuesday following a report from Blockworks that the SEC is moving forward with steps to approve spot SOL ETFs. Regulators have asked prospective issuers to revise their S-1 filings within the next week and plan to respond within 30 days — a move that signals a faster-than-expected timeline.

This push follows the successful debuts of Bitcoin and Ethereum spot ETFs, and now asset managers are racing to launch products tied to smaller-cap tokens like SOL. Among the firms submitting filings are Fidelity, Franklin Templeton, VanEck, Grayscale, and 21Shares. Notably, Grayscale is looking to convert its existing Solana Trust into an ETF — mirroring its previous Bitcoin and Ethereum transitions.

Insiders say the SEC has zeroed in on two key factors: the mechanics of in-kind redemptions and the possibility of integrating staking rewards into the ETF structure — a notable evolution that could boost returns and expand institutional appeal. If all moves forward smoothly, approvals could arrive as early as July, well ahead of the SEC’s formal review deadline in October.

Market response was swift. SOL briefly climbed past $164 following the news, reflecting investor optimism that a spot ETF could open the floodgates for broader adoption. However, analysts urge measured expectations. While U.S. demand for Bitcoin and Ethereum ETFs has been strong, interest in smaller crypto funds — including existing Canadian SOL ETFs — has so far lagged behind.

Still, this is a milestone. Bringing Solana into the ETF spotlight signals that regulators may be warming to a wider crypto landscape. If staking is allowed, it could reshape how traditional investors think about yield in digital assets — and bring new energy into the DeFi space through a Wall Street lens.

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