Bitwise and 21Shares Solana ETF Reviews Delayed as SEC Extends Decision Timeline

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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May 22, 2025

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The U.S. Securities and Exchange Commission (SEC) has pushed back its decision on the Solana ETF proposals from Bitwise and 21Shares, as revealed in a May 20 filing. The holdup follows earlier delays on would-be ETFs tied to Ethereum staking, XRP, and Dogecoin.

Crypto enthusiasts still hope to see more exchange-traded products make it to market, but the SEC is proceeding with caution. The agency says it needs added time to sort through technical details, legal questions, and investor-protection issues.

With the extension, regulators now have until July 6, 2025, to rule on Bitwise’s plan for an Ethereum staking ETF. The extra window, the SEC notes, will help it weigh the risks and mechanics of bringing staking into a publicly traded fund.

A similar timeline is expected for Solana-based ETFs, including those proposed by Bitwise and 21Shares, both of which seek to provide institutional investors with regulated exposure to SOL.

Institutional Adoption Slows Amid Ongoing Uncertainty

Institutional investors looking to gain direct exposure to alternative assets like Solana continue to face hurdles as U.S. regulators weigh market risks, volatility, and consumer protection frameworks.

The SEC’s recent extensions not only affect the timelines for these products but also indicate broader skepticism about rapidly integrating cryptocurrencies into the traditional financial system.

While firms like Bitwise and 21Shares have emphasized their adherence to compliance standards and transparency, the inclusion of features like staking, where users earn rewards for helping secure the blockchain, adds another layer of complexity that the SEC appears hesitant to approve without extensive review.

Surprise Approval Remains

Despite the delays, speculation persists within the industry that one crypto ETF could be greenlit ahead of schedule.

Though no specific product has been named, the possibility of a surprise approval is keeping industry watchers on alert. In the meantime, the SEC’s extensions indicate that no major breakthroughs in crypto ETF policy are expected before mid-2025, leaving market participants in a holding pattern.

The SEC’s latest actions reflect a careful, methodical approach to crypto ETF approval, prioritizing due diligence over market momentum.

SEC Slammed With 70+ Crypto ETF Filings

In April, Bloomberg analyst Eric Balchunas revealed that more than 70 cryptocurrency ETFs are currently awaiting review by the SEC.

The lineup features a broad range of digital assets beyond Bitcoin, including XRP, Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), and various crypto derivatives.

According to Balchunas, spot ETF applications for XRP and Solana are among the most popular in the current wave, with 10 institutions applying for XRP-based ETFs and six for Solana.

These numbers suggest rising institutional interest in diversifying crypto exposure beyond just Bitcoin and Ethereum. The surge in applications shows growing market demand and a shifting regulatory environment in the U.S.