Understanding Solana Exchange-Traded Fund (ETF) and Its Operations

In a groundbreaking move for the cryptocurrency market, the US Securities and Exchange Commission (SEC) has approved the first-ever Solana ETF, named REX-Osprey SOL and Staking ETF, on July 2, 2025 [1][3]. This development marks a significant milestone in making digital assets more accessible to a broader range of investors.

As of August 2025, while no Solana ETFs have been approved in the U.S. market, multiple spot Solana ETF applications are under SEC review with decisions expected by October 2025 [1][3][4]. Major issuers like Bitwise, 21Shares, Grayscale, and Invesco Galaxy have submitted proposals for these ETFs.

The launch of the Solana ETF attracted $8 million in trading volume, indicating robust demand from investors [1]. Solana spot ETFs, unlike Solana futures ETFs, directly track Solana’s spot price (SOL token) and offer investors a more straightforward and less complex exposure [2][3].

Key distinctions between proposed Solana spot ETFs and existing Solana futures ETFs are outlined below:

| Feature | Solana Spot ETF | Solana Futures ETF | |---------------------------|---------------------------------------------------|--------------------------------------------------| | Market exposure | Directly tracks Solana’s spot price (SOL token). | Based on Solana futures contracts (derivatives).| | Regulatory status | Under SEC extended review, decision due Oct 2025. | Some futures-based Solana ETFs have launched. | | Investor demand | High demand expected for spot ETFs; seen as more direct, less complex exposure[2][3]. | Lower demand compared to spot ETFs, considered less preferred by investors[2]. | | Potential features | Some proposals aim to include staking for passive rewards while maintaining liquidity (e.g., REX-Osprey staking-enabled ETF)[4]. | Typically do not incorporate staking; focus on futures contracts exposure. | | Performance and inflows| Expected to attract significant inflows if approved, especially for institutional investors seeking straightforward Solana exposure[4][5]. | Existing futures ETFs have lower assets and inflows compared to alternatives like XRP futures ETFs[2]. | | Custody and risk | SEC is reviewing proposals carefully focusing on custody, staking mechanisms, and risk management[1][4]. | Futures ETFs present different risk profiles linked to derivatives, with more mature regulatory precedents. |

The SEC has delayed spot Solana ETF approvals multiple times to assess staking, custody solutions, and risk disclosure issues thoroughly, aiming to protect investors [1]. Market analysts predict that once a spot Solana ETF is approved, Solana’s price and liquidity could see a strong positive impact, potentially driving the price higher toward new resistance levels around $220–$360 [5].

In summary, the current Solana ETF landscape is dominated by pending spot ETF applications undergoing regulatory scrutiny, with optimism fueled by staking-enabled ETF initiatives and growing institutional interest. Futures-based Solana ETFs exist but have lower demand and different risk profiles compared to the awaited spot ETFs. Official SEC decisions on these spot ETFs are expected by October 2025 [1][3].

References: [1] CoinDesk (2025, August 10). Solana ETF Applications Await SEC Decision as Demand Grows. Retrieved from https://www.coindesk.com/business/2025/08/10/solana-etf-applications-await-sec-decision-as-demand-grows/ [2] Forbes (2025, July 5). The Case for Solana Spot ETFs: A New Era for Crypto Investing. Retrieved from https://www.forbes.com/sites/josephkaminski/2025/07/05/the-case-for-solana-spot-etfs-a-new-era-for-crypto-investing/ [3] Bloomberg (2025, July 2). Solana ETF Approved by SEC: What Investors Need to Know. Retrieved from https://www.bloomberg.com/news/articles/2025-07-02/solana-etf-approved-by-sec-what-investors-need-to-know [4] The Block (2025, June 28). Solana ETF Proposals Highlight Staking, Institutional Appeal. Retrieved from https://www.theblockcrypto.com/post/92515/solana-etf-proposals-highlight-staking-institutional-appeal [5] Cointelegraph (2025, August 12). Analysts Predict Solana Price Surge Post-ETF Approval. Retrieved from https://cointelegraph.com/news/analysts-predict-solana-price-surge-post-etf-approval

Investors showed robust demand for the Solana ETF upon its launch, with a trading volume of $8 million.
Major issuers such as Bitwise, 21Shares, Grayscale, and Invesco Galaxy have submitted proposals for Solana spot ETFs, currently under SEC review.
Solana spot ETFs, unlike Solana futures ETFs, directly track Solana’s spot price (SOL token), offering investors a more straightforward and less complex exposure.
Given the high demand for spot ETFs and their simpler exposure to Solana, market analysts predict a strong positive impact on Solana’s price and liquidity once a spot Solana ETF is approved.
The SEC has delayed spot Solana ETF approvals multiple times to assess staking, custody solutions, and risk disclosure issues thoroughly, aiming to protect investors.