Solana ETF leads, more cryptocurrency ETFs are expected to be approved by the U.S. SEC next month?

The U.S. Securities and Exchange Commission (SEC) has requested that Solana ETF applicants submit revised S-1 forms within a week, a move that could significantly advance the approval timeline for the Solana ETF to within 3-5 weeks. This may just be the beginning of the upcoming "Token ETF Summer."

On June 10, Blockworks reported that the SEC has asked potential Solana ETF issuers to submit revised S-1 forms within the next week, a move seen by industry insiders as a signal of a significant acceleration in the approval process.

Three informed sources revealed that this action by the regulatory agency could shorten the approval timeline for the Solana ETF to within 3-5 weeks.

Following the news, the price of the SOL token immediately rose by 4%, approaching the $165 mark. This also highlights the market's appetite for institutional-grade cryptocurrency products. Solana is currently the sixth-largest cryptocurrency in the world.

What is even more noteworthy is that some analysts have pointed out that the SEC may begin approving some cryptocurrency-related exchange-traded funds as early as next month, thus kicking off the "Token ETF Summer."

SEC's Attitude Takes a Sharp Turn

Reportedly, what is even more striking is that the SEC has shown an open attitude towards staking functions in its request for document revisions.

Two sources indicated that the regulatory agency has requested updates regarding physical redemption and staking methods, explicitly stating a willingness to include staking as part of the Solana ETF.

This shift in attitude is undoubtedly a significant positive for investors relying on staking yields. The SEC must make a decision by July 2, and Bloomberg analysts have given a 90% approval probability.

Currently, major asset management firms such as Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, and Franklin Templeton have all submitted Solana ETF applications to the SEC.

Among them, Grayscale is seeking to convert its SOL trust into a spot ETF, replicating the successful model of its Bitcoin and Ethereum ETFs.

A previous article by Wall Street Insights pointed out that Solana initially gained widespread attention due to the support of former cryptocurrency billionaire Sam Bankman-Fried. In 2022, following the collapse of his cryptocurrency exchange FTX and the associated Alameda Research fund, Solana's survival was called into question. However, due to its lower fees compared to competitors, Solana has since made a strong comeback.

Token ETF Summer is Approaching

Some analysts have stated that the U.S. Securities and Exchange Commission may begin approving some cryptocurrency-related exchange-traded funds (ETFs) as early as next month, thus heralding the arrival of the "Token ETF Summer."

Bloomberg senior ETF analyst Eric Balchunas posted a report from colleague James Seyffart on social media platform X on Tuesday, stating that "ETFs tracking broad cryptocurrency indices may receive SEC approval next month." The report indicates that the SEC may also "take early action" on Solana and staking ETF applications, with Balchunas stating to "prepare for a potential altcoin ETF summer, with Solana likely leading the way."

Additionally, Duncan Moir, president of 21Shares, stated at the Proof of Talk institutional capital inflow roadmap conference held in Paris that as more asset management companies enter the cryptocurrency ETF competition, "basket products will become more interesting."

He pointed out that when investors are unsure which cryptocurrency will be the winner, purchasing a basket product becomes "the no-brainer choice."