SEC Defers Ruling on 21Shares and Bitwise Solana ETF Proposals Invites Public Input

Summary

• The SEC has postponed its decision on Solana ETF proposals from 21Shares and Bitwise, “instituting proceedings” for further review and inviting public comment, emphasizing this delay doesn’t predetermine the outcome.

• This action occurs as the SEC navigates a large and diverse queue of over 70 crypto ETF applications, including major altcoins, meme-themed assets, and leveraged products, under an evolving regulatory tone.

• Despite regulatory deliberations, crypto investment products continued a five-week streak of net inflows, adding $785 million last week and bringing 2025’s total to $7.5 billion, with global AUM nearing all-time highs.

• While US, German, and Hong Kong markets saw significant crypto ETP inflows, Solana-based products experienced minor outflows last week, contrasting with inflows into XRP and Sui products.

The United States Securities and Exchange Commission (SEC) has opted to extend its deliberation period concerning two proposed exchange-traded funds (ETFs) linked to the Solana cryptocurrency.

This deferral affects the 21Shares Core Solana ETF and the Bitwise Solana ETF.

Concurrently, the regulatory body is actively soliciting public commentary to inform its ongoing assessment.

According to official filings made public on Monday, the SEC has indicated the “institution of proceedings” to undertake a more thorough examination of these Solana ETF submissions.

The Commission was careful to clarify the implications of this step, stating, “Institution of proceedings does not indicate that the Commission has reached any conclusions.”

Furthermore, the SEC underscored its receptive stance towards external perspectives: “Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”

It’s noteworthy that the regulatory agency is presently evaluating a substantial roster of over 70 applications for various cryptocurrency ETFs.

21Shares, a firm already engaged in the U.S. market via its spot Bitcoin and Ethereum ETFs in collaboration with Ark Invest, has recently broadened its scope of regulatory filings to encompass potential ETFs for Solana, Dogecoin, XRP, and Polkadot.

The SEC’s current review encompasses an expanding array of cryptocurrency ETF proposals that venture beyond Bitcoin and Ethereum, including applications for assets such as Solana, XRP, Dogecoin, Cardano, and Litecoin.

This latest phase of regulatory scrutiny occurs within a context of evolving regulatory perspectives under the Trump administration.

Extensive Backlog of Crypto ETF Applications Under Review

The SEC’s current docket includes the examination of over 70 distinct applications for cryptocurrency ETFs.

These proposals span a wide range of investment products, from those tracking major alternative cryptocurrencies like XRP, Solana, and Litecoin to more speculative offerings, including meme-centric and leveraged products.

Eric Balchunas, an ETF analyst at Bloomberg, described the current list of pending applications as notably “wild,” highlighting the eclectic assortment of filings, which reportedly refer to unconventional themes like “Penguins, Doge, and 2x Melania.”

As per Bloomberg estimates released in February, Litecoin ETFs were considered to have the highest probability of approval at 90%, with Dogecoin ETFs projected at a 75% likelihood.

Persistent Investor Interest in Crypto ETPs Despite Regulatory Delays

Notwithstanding the ongoing regulatory processes, crypto-related investment products have continued to garner significant investor capital.

Data provided by CoinShares indicates that these products attracted net inflows totaling $785 million in the past week.

This amount represents the fifth consecutive week of positive net capital movement, bringing the cumulative inflows for the year 2025 to $7.5 billion.

Globally, assets under management (AUM) within cryptocurrency exchange-traded products (ETPs) have ascended to $172.9 billion, nearing historical peaks.

Investment products domiciled in the U.S. spearheaded these inflows, accounting for $681 million.

Germany followed with $86.3 million, and Hong Kong registered $24.2 million in inflows, the latter marking its most substantial inflow since November 2024.

Conversely, markets in Sweden, Canada, and Brazil experienced modest net outflows.

Interestingly, despite the regulatory spotlight on Solana ETFs, investment products specifically linked to Solana recorded net outflows of $0.9 million last week.

In contrast, products associated with XRP and Sui attracted inflows of $5 million and $9.3 million, respectively, while Cardano and Chainlink-linked products also witnessed minor net capital gains.

Also Read: Regulatory Scrutiny Continues as SEC Extends Review Period for Spot Solana ETF Applications

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