What is the current situation with Solana ETFs? When are experts expecting approval?

As President-elect Donald Trump prepares to take office, the crypto industry is brimming with optimism about the potential for ground-breaking policy changes under the new administration.

Along with Trump, who is considered the most crypto-friendly president in US history, many people are expecting a regulatory environment that promotes collaboration rather than sanctions.

One of the most debated questions is whether the new administration will facilitate the approval of exchange-traded funds (ETFs) following Solana (SOL) in the spot market.

Solana has attracted great interest after implying that the US Securities and Exchange Commission (SEC) will be interested in S-1 ETF applications in November. However, under the current leadership, the SEC rejected leading issuers' applications such as VanEck, 21Shares, Bitwise, WisdomTree and Canary Capital. According to Bloomberg analyst James Seyffart, "The SEC essentially rejected the latest Solana ETF applications by not accepting them."

Although applicants have submitted the necessary 19b-4 forms to propose rule changes, sources claim that the SEC has requested the withdrawal of all applications. These forms played a critical role in the approval of spot Bitcoin and Ethereum ETFs last year and supported optimism in the market.

With the change in SEC leadership in the Trump administration, analysts and industry leaders are cautiously optimistic. ETF Store President Nate Geraci suggested that Solana ETFs could be approved by the end of 2025.

However, regulatory timelines are quite stringent. A senior executive from a company planning a Solana ETF issuance stated, “The earliest approval is likely 240 days after new applications are submitted. I would be very surprised if it comes earlier.” The executive noted that 240 days represented the legal deadline for SEC responses after applications are submitted.

Steven McClurg, Chief Investment Officer of Canary Capital, highlighted potential delays due to leadership transitions. "Optimistic estimate by the end of 2025. It's possible, but very optimistic," he said. "Crypto is not the SEC's top priority, it's a priority for us but not for them," he added.

Similarly, Vivian Fang, a finance professor at Indiana University, noted that while the Trump administration is more crypto-friendly, regulatory changes take time. She warned against expecting immediate transformation, stating, “Even with a new SEC chairman, many staff in the Division of Trading and Markets remain the same.”