Fidelity’s Solana ETF Faces Another Regulatory Delay as SEC Seeks Public Input

• The SEC delayed Fidelity’s Solana ETF approval again and opened a public comment period. 

• New regulatory guidelines require crypto ETF providers to explain risks and custody structures in plain English. 

• The approval process may speed up in the future, but altcoin ETFs still face significant regulatory hurdles.

The Securities and Exchange Commission has postponed its decision on Fidelity’s proposed Solana exchange-traded fund, marking another setback for cryptocurrency ETF approvals. The regulatory body confirmed the delay on July 7, 2025, extending the review period for the filing submitted by Cboe BZX Exchange.

The SEC announcement triggers a formal review process that includes public comment periods. The public has 21 days to submit comments and 35 days for rebuttals from the Federal Register publication date. This timeline suggests the approval process will extend well beyond initial expectations.

Bloomberg ETF analyst James Seyffart described the delay as “expected” and highlighted the regulatory challenges facing altcoin-based ETFs. The decision reflects the SEC’s cautious approach toward approving spot cryptocurrency ETFs beyond Bitcoin and Ethereum products.

New Regulatory Framework Creates Higher Standards

The SEC recently released comprehensive guidance for cryptocurrency exchange-traded products, establishing stricter requirements for asset managers. The new framework demands clear explanations of risks, custody structures, and product characteristics in plain English.

This guidance represents a significant policy shift under the Republican-majority commission. The updated standards aim to improve transparency for investors and regulators by requiring detailed explanations of what distinguishes crypto-based ETFs from traditional investment products.

The regulatory changes particularly impact altcoin ETFs like the proposed Solana fund. These products face additional scrutiny due to their exposure to newer digital assets with less established regulatory precedent.

Approval Timeline Improvements Still Under Development

The SEC continues working on a second document that could streamline future ETF approvals. The proposed changes would reduce approval timeframes from over 200 days to approximately 75 days, potentially benefiting numerous pending applications.

Despite these planned improvements, the Solana ETF remains in regulatory limbo alongside dozens of similar filings. Applications for XRP and meme coin ETFs face comparable delays as regulators establish comprehensive frameworks for altcoin-based products.

The regulatory uncertainty has prompted some firms to explore alternative strategies. REX Financial and Osprey Funds recently launched the REX-Osprey Sol + Staking ETF, offering indirect Solana exposure through staking rewards rather than direct token holdings.

The delay underscores the SEC’s measured approach to cryptocurrency ETF approvals. While Bitcoin and Ethereum ETFs have gained regulatory acceptance, altcoin-based products face additional hurdles due to market maturity concerns and regulatory complexity.

Fidelity’s Solana ETF application represents one of several high-profile cryptocurrency fund proposals awaiting SEC approval. The outcome will likely influence regulatory decisions for similar products and shape the broader cryptocurrency ETF landscape.