SEC once again delays decision on Bitcoin, Grayscale and Solana ETFs
The United States Securities and Exchange Commission (SEC) has announced that it is postponing its decision on several proposed exchange-traded funds (ETFs). These include applications related to Bitcoin and the Grayscale Solana Trust. But what does this mean for the market and for you as an investor?
The Bitcoin ETF from Truth Social, the crypto initiative linked to Donald Trump
The Grayscale Solana Trust, an ETF focused on the Solana cryptocurrency
The delays mean the SEC is taking more time to assess these complex proposals, weigh the risks and address any outstanding questions. This is not the first time the SEC has requested more time. In the past, other ETFs have also entered the market with some delay. In fact, the very first Bitcoin ETF took several years to receive approval.
Truth Social Bitcoin ETF: decision postponed to 18 September 2025, instead of the previous deadline of 4 August.
Grayscale Solana Trust ETF: extended to 10 October 2025, following earlier deferrals already in place.
These extensions fall within the legally permitted review period of approximately 240 to 270 days for ETF applications.
One major reason for the delay is that many of these applications include new and technically intricate components. For instance: staking, which involves locking up crypto assets to support a network in return for rewards, raises questions at the SEC about how it fits within existing legal frameworks. Is staking comparable to earning interest on a savings account? Or is it more akin to a high-risk investment? And who is held accountable if something goes wrong?
The SEC is also carefully examining how investors can enter and exit such ETFs. With traditional ETFs, this typically happens through "in-kind redemptions", allowing investors to exchange their shares for the underlying assets without triggering a market sale. However, in the crypto world, this process is more complex and its safety and transparency are not yet fully established.
Another key factor is regulation – or the lack of it. Whereas clear rules exist for stocks, crypto remains a legal grey area. The SEC wants to avoid rushing into approvals for products that may later prove difficult to monitor or pose unforeseen risks to investors. So the delays should not be seen as resistance, but rather as a sign that the regulator is approaching the matter with caution and care.
For companies like Grayscale, which are trying to convert existing funds into full-fledged ETFs, the delay brings financial pressure. They‘ve argued that clients are suffering losses because they currently lack access to the liquidity and transparency that an ETF would provide. This puts added pressure on the SEC but also highlights how high the stakes have become.
In the longer term, this slow progress could actually be beneficial. The SEC is currently working on new guidelines designed to make future applications simpler and faster to process. There is talk of a standard framework that would categorise crypto ETFs more clearly, with the goal of reducing review times from 240 days to around 75. This would make it significantly easier for both providers and investors to understand what is – and isn‘t – allowed.
However, there are signs of progress. The SEC has recently published a formal evaluation framework with guidance on disclosure, custody, and market mechanisms. Furthermore, the approval of the REX-Osprey Sol + Staking ETF – an indirect Solana-based ETF with a staking component – shows that new structures are becoming viable, even as standard approval procedures remain under development.
Disclaimer:This is not financial advice. Always conduct your own research and consult with a financial professional.
Which ETFs are currently delayed?
The U.S. financial regulator, the Securities and Exchange Commission (SEC), has once again delayed decisions on a number of key ETF applications. These include:The delays mean the SEC is taking more time to assess these complex proposals, weigh the risks and address any outstanding questions. This is not the first time the SEC has requested more time. In the past, other ETFs have also entered the market with some delay. In fact, the very first Bitcoin ETF took several years to receive approval.
New deadlines for decisions
New deadlines have been set for both applications.Truth Social Bitcoin ETF: decision postponed to 18 September 2025, instead of the previous deadline of 4 August.
Grayscale Solana Trust ETF: extended to 10 October 2025, following earlier deferrals already in place.
These extensions fall within the legally permitted review period of approximately 240 to 270 days for ETF applications.
Why the delay?
The SEC is fundamentally a supervisory authority with a mission to protect investors and to ensure fair, orderly and efficient markets. In the case of crypto ETFs – particularly those involving emerging tokens like Solana or technically complex mechanisms such as staking – the evaluation process is far from straightforward.One major reason for the delay is that many of these applications include new and technically intricate components. For instance: staking, which involves locking up crypto assets to support a network in return for rewards, raises questions at the SEC about how it fits within existing legal frameworks. Is staking comparable to earning interest on a savings account? Or is it more akin to a high-risk investment? And who is held accountable if something goes wrong?
The SEC is also carefully examining how investors can enter and exit such ETFs. With traditional ETFs, this typically happens through "in-kind redemptions", allowing investors to exchange their shares for the underlying assets without triggering a market sale. However, in the crypto world, this process is more complex and its safety and transparency are not yet fully established.
Another key factor is regulation – or the lack of it. Whereas clear rules exist for stocks, crypto remains a legal grey area. The SEC wants to avoid rushing into approvals for products that may later prove difficult to monitor or pose unforeseen risks to investors. So the delays should not be seen as resistance, but rather as a sign that the regulator is approaching the matter with caution and care.
What does this mean for investors and the market?
For investors, the key message is: patience is crucial. Although the market has moved closer in recent years to accepting digital assets, the path remains bumpy – especially when it comes to formal market products like ETFs. While the approval of spot Bitcoin ETFs earlier this year brought excitement and institutional inflows, the road is still long for alternative tokens such as Solana and XRP.For companies like Grayscale, which are trying to convert existing funds into full-fledged ETFs, the delay brings financial pressure. They‘ve argued that clients are suffering losses because they currently lack access to the liquidity and transparency that an ETF would provide. This puts added pressure on the SEC but also highlights how high the stakes have become.
In the longer term, this slow progress could actually be beneficial. The SEC is currently working on new guidelines designed to make future applications simpler and faster to process. There is talk of a standard framework that would categorise crypto ETFs more clearly, with the goal of reducing review times from 240 days to around 75. This would make it significantly easier for both providers and investors to understand what is – and isn‘t – allowed.
Implications for Solana and altcoin ETFs
ETF applications involving smaller tokens like Solana, XRP, Dogecoin and Litecoin are consistently being delayed. Proposals from issuers such as VanEck, Bitwise, 21Shares and Canary Capital remain pending and are frequently extended during the review process.However, there are signs of progress. The SEC has recently published a formal evaluation framework with guidance on disclosure, custody, and market mechanisms. Furthermore, the approval of the REX-Osprey Sol + Staking ETF – an indirect Solana-based ETF with a staking component – shows that new structures are becoming viable, even as standard approval procedures remain under development.
Conclusion
Although no final decisions have been made at this stage, the SEC‘s postponements suggest a methodical and careful approach to evaluating ETF applications related to altcoins like Solana. For investors, this means it's wise to stay informed, closely follow regulatory developments, and not make decisions based on short-term emotion. The coming months – particularly September and October 2025 – will likely prove to be decisive.Disclaimer:This is not financial advice. Always conduct your own research and consult with a financial professional.