Solana ETF application has made significant progress, approval time may be advanced.

The recent actions taken by the U.S. Securities and Exchange Commission (SEC) indicate that the approval process for the Solana ETF may be expedited.

Regulators recently issued notifications to several asset management companies, requiring them to submit updated Solana ETF registration documents within a week. The SEC specifically emphasized the need to revise terms related to "physical redemption" and "staking mechanisms," and hinted that it may allow Solana ETF to include staking yield features. Market analysts interpret this as a sign of a more positive regulatory stance, with reports suggesting that these updates could lead to the approval of Solana ETF within three to five weeks.

After the news broke, the price of SOL rose 5% in the short term, breaking through $165, before retreating to around $163.6.

The core content of the SEC's request for amendments mainly involves two aspects: the way physical redemptions are expressed, and how issuers handle staking issues. For investors, physical redemption means that ETF share holders can choose to directly receive an equivalent amount of SOL tokens instead of cash. This mechanism usually has advantages in terms of tax efficiency and operational flexibility. Regarding staking, if the SEC allows for a staking mechanism, investors not only benefit from price appreciation but may also indirectly enjoy staking rewards, increasing the attractiveness of the SOL ETF.

The lineup of institutions applying for this product includes well-known organizations such as Fidelity, VanEck, and Grayscale. Notably, Grayscale plans to convert its existing SOL trust product into a spot ETF. Market observers have pointed out that the CME exchange launched Solana futures in February this year, a move similar to the process before the approval of Bitcoin and Ethereum ETFs, further enhancing market expectations for the approval of the Solana ETF.

According to reports, after completing the update of the S-1 filing, the Solana ETF may receive final approval in the next three to five weeks. Bloomberg's senior ETF analyst James Seyffart is optimistic about this, believing that approval could be achieved this year, possibly as early as July. Although the SEC's final deadline for the 19b-4 filings (application for listing rule changes) for these products is in October, Seyffart believes that the SEC may prioritize the applications related to the Solana and staking ETFs.

Bloomberg industry research analyst Eric Balchunas has raised the likelihood of SOL ETF approval from 70% to 90%. He recently stated: "Prepare for a potential cryptocurrency ETF summer, with Solana possibly leading the way."

From a technical perspective, analyst Grayhoood observed that SOL's technical indicators such as RSI, the stochastic oscillator, and the commodity channel index are all releasing positive signals. Especially after SOL broke through the resistance level of $154, it indicates that buying power has strengthened, and there is still room for price increases.

In the long term, the 30-day and annual moving averages (which have decreased by 5.3% and 2.9% respectively) indicate that the recent gains have not yet fully reversed the previous downtrend. If it can continue to break through, the resistance levels above are around $181/$187/$194.