SEC Delays Fidelity Solana ETF Again as Public Comment Phase Begins

Andrew Chen
Solana Coins

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Key Takeaways:

  • SEC has delayed the Fidelity Solana ETF proposal, launching a public comment phase before any decision.
  • New guidance requires plain-language ETF filings, with a focus on staking, custody, and investor protections.
  • Alternative Solana exposure products are emerging as firms seek ways to meet market demand amid regulatory uncertainty.

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the Fidelity Solana ETF, pushing the proposal into a public comment period. The delay, confirmed on July 7, 2025, affects the application filed through Cboe BZX Exchange to list and trade shares of the Fidelity Solana Fund.

This latest move reflects the SEC’s ongoing caution regarding altcoin-related exchange-traded funds, despite increasing investor interest and recent guidance issued for digital asset investment products.

SEC Requests Comments on Fund Structure and Investor Protections

The regulatory agency has invited the public to submit feedback on the ETF’s design, including concerns around market structure, transparency, custody, and investor protection. The comment period will last 21 days, followed by a 14-day window for rebuttals, once the proposal is published in the Federal Register.

The SEC’s heightened scrutiny stems from lingering concerns about volatility and the lack of comprehensive oversight in altcoin markets. Industry watchers had widely anticipated the delay, noting the agency’s measured pace in reviewing non-Bitcoin ETFs.

New SEC Guidance Demands Clarity and Simplicity in Crypto ETF Filings

In June, the SEC issued its first formal guidance for crypto-related ETFs, requiring asset managers to submit filings using plain language and to disclose detailed information on digital asset mechanisms like staking and custody.

Fidelity’s Solana ETF filing must now be revised to reflect these updated standards, including disclosures around in-kind redemptions and staking processes. The SEC has set an end-of-July deadline for these updates, signaling its commitment to investor comprehension and regulatory clarity.

Regulatory Timeline Could Be Streamlined with Proposed SEC Rule

While current ETF approvals can take over 200 days, a new draft rule under consideration by the SEC could reduce review timelines to just 75 days. If implemented, this streamlined process would greatly benefit altcoin-focused ETF proposals like Fidelity’s Solana fund.

Despite the delay, sources close to the matter suggest a decision may come before the October 10 deadline, potentially marking the first SEC ruling on a Solana-based ETF.

Also Read: GUNZ Announces $GUN Token Expansion to Solana

In response to ongoing regulatory delays, companies are introducing alternative investment products that offer indirect exposure to Solana. Notably, REX Financial and Osprey Funds recently launched the REX-Osprey Sol + Staking ETF, which tracks Solana’s economic performance without directly holding the asset.

This workaround highlights growing investor demand for Solana-linked investment vehicles, even as formal SEC approval for altcoin ETFs remains elusive.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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