The United States Securities and Exchange Commission has requested updated S-1 filings from asset managers pursuing spot Solana ETFs, raising expectations of imminent approval. According to ETF analyst James Seyffart, the SEC’s latest move has already seen six of the seven applicants revise their submissions to include staking features.
This interaction is seen as a significant change in the regulating tone, particularly because the SEC took the initiative to contact the participating firms. Product issuers Fidelity, Grayscale, Franklin Templeton, VanEck, Bitwise, 21Shares and Canary are currently in the supposedly last regulatory process.
Staking Requirement Sparks Final Wave of Submissions
According to James Seyffart, the amended filings follow the SEC requesting issuers to provide elaborated staking mechanisms for their proposed Solana ETFs. Market watchers have taken this as a positive development, which is similar to the trend prior to Bitcoin ETF approvals.
All the involved companies acted promptly, upgrading their apps to accommodate the request of staking. Seyffart observed that such an engagement rate is reflective of the previous communication rounds that had been witnessed earlier in the year before spot Bitcoin ETFs were approved. Though SEC has not given any formal time schedule, this engagement has narrowed down the expectations of the industry to a close-by decision.
Analysts consider such activity to be a regular process of regulation in which ongoing discussions with issuers frequently result in eventual approval. A number of legal experts think that the SEC is trying to prevent future legal ambiguity by getting the finer details of staking out of the way now.
Market Reactions Intensify as Solana Targets $400
The hype of a Solana ETF is already creating some effects in the market, as most users predict a significant price reaction to the approval. The impact of the listing of spot Bitcoin ETFs earlier this year is still vivid in the minds of investors following their role in propelling massive capital inflows and demand.
As Solana trades at about $145, an increasing number of analysts are updating their short-term targets. Others now have a $400 target on SOL, using the same reasoning as to why Bitcoin rallied when ETF was approved. It seems the market is expecting an early outcome based on historical trends.
Seyffart believes that with the trend going on, the SEC may complete the process in a matter of weeks. With the growing hype, it might not take long before Solana becomes the next crypto asset to have spot ETF approval in the United States.
