SEC Delays Decision on Spot Solana ETFs from Bitwise and 21Shares Amid Ongoing Scrutiny

The U.S. Securities and Exchange Commission has hit pause once again on two proposed spot Solana (SOL) exchange-traded funds, as regulatory hesitation continues to cloud the future of crypto ETFs. In its latest announcement, the SEC said it will initiate further proceedings to evaluate whether filings from Bitwise and 21Shares meet the standards required under the Securities Exchange Act of 1934.

This new review cycle is centered around persistent concerns over market manipulation and safeguarding investors—issues that have repeatedly surfaced in prior ETF deliberations.

SEC Demands More Time and Input

Bitwise initially submitted its application in January via Cboe’s BZX Exchange, while 21Shares—already an issuer of approved Bitcoin and Ethereum ETFs—filed a similar proposal. Despite their experience in the crypto investment space, both companies now find themselves in regulatory limbo as the SEC seeks more public comments and analytical review before taking further action.

The delay highlights an ongoing pattern of inertia within the agency, which has yet to greenlight any ETF directly tied to Solana, a blockchain network frequently praised for its speed and lower transaction costs compared to Ethereum.

Crypto ETF Gridlock Grows

The Solana ETF delay isn’t an isolated incident. It adds to a growing backlog of digital asset ETF proposals facing setbacks, as the SEC exercises caution in defining clear regulatory pathways for the crypto sector.

Still, analysts remain hopeful. Bloomberg’s James Seyffart and Eric Balchunas recently reiterated their belief that spot crypto ETFs—including those tied to Solana and Litecoin (LTC)—stand a strong chance of eventual approval. They’ve pegged the likelihood at around 90%, citing increasing institutional interest and supportive regulatory interpretations around crypto as commodities.

Investors Face Long Wait

Despite this optimism, a final ruling may not come until late 2025. As regulatory dialogue drags on, investors eager for Solana-backed ETFs will have to wait through months of continued uncertainty.

Until then, Solana remains off-limits to U.S. ETF issuers, even as demand for diversified crypto exposure grows across retail and institutional markets.