Staking the Claim: Solana ETFs Connect DeFi with Traditional Finance

The U.S. Securities and Exchange Commission (SEC) is approaching a verdict on spot

(SOL) exchange-traded fund (ETF) applications, with experts projecting a 90% chance of approval by October 2025. Recent submissions from leading asset managers such as Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and Canary Capital now feature staking options, allowing investors to earn returns on their Solana assets. This update reflects the SEC’s latest regulatory adjustments, which have shortened the approval process for commodity-based ETFs, cutting the standard review time from 240 days to just 75 days for straightforward cases title1 [ 1 ]. By including staking—a process where participants help secure the Solana network in exchange for rewards—these filings highlight a rising institutional interest in crypto products that generate yield, potentially setting a standard for future approvals involving and other proof-of-stake platforms title2 [ 2 ].

The updated S-1 documents from these companies show a unified approach to addressing the SEC’s earlier concerns, such as asset custody and validator centralization. For example, Fidelity’s proposal details specific staking methods to produce yield, while Grayscale aims to transform its current Solana Trust into an ETF. Some amendments, labeled as “Amendment No. 4,” indicate ongoing discussions between the SEC and issuers, with regulators requesting further information as soon as August 2025 title3 [ 3 ]. Industry observers, including ETF Store president Nate Geraci, believe approvals could come within two weeks, pointing to the SEC’s recent fast-tracking of Ethereum-related ETFs and the coordinated efforts of applicants title4 [ 4 ].

The regulatory landscape has evolved considerably, as the SEC’s adoption of “generic listing standards” for commodity ETFs has lowered entry barriers. This shift has accelerated the review of Solana ETF proposals, providing a clearer and faster path to approval compared to earlier crypto ETF attempts. The SEC’s new openness to staking as a feature within ETFs marks a significant change from its previous reservations about reward classification and asset custody. Incorporating staking into ETFs bridges the gap between decentralized finance (DeFi) and traditional finance (TradFi), giving investors both market exposure and passive income opportunities title5 [ 5 ].

Market trends further reinforce the likelihood of approval. Solana’s value has climbed 30% in 2024, and early Solana ETF offerings, like REX-Osprey’s staking fund, have attracted over $300 million in managed assets. In Europe, Bitwise’s staking ETP drew $60 million in investments within just five days, highlighting strong global interest. Analysts note that Solana’s high throughput (65,000 transactions per second) and its widespread use in DeFi and NFTs make it appealing for institutional investors title6 [ 6 ]. Should these ETFs gain approval, they could make Solana more accessible to both individual and institutional investors, while also boosting liquidity and improving price discovery.

The possible green light for Solana ETFs could have far-reaching effects on the broader crypto market. It may encourage similar filings for Ethereum and other proof-of-stake blockchains, changing how investors interact with digital assets. The SEC’s acceptance of staking as a valid investment component could open the door to more yield-focused products across various networks, supporting a more developed institutional market. Nonetheless, challenges persist, such as regulatory debates over whether Solana should be classified as a commodity or a security, and the need for secure custody solutions. Despite these obstacles, the growing momentum behind Solana ETFs signals a wider recognition of crypto assets as a core part of mainstream finance title7 [ 7 ].