From decrypt by Vince Dioquino

The Securities and Exchange Commission is now weighing multiple Solana (SOL) ETF applications, with observers eyeing the move as a departure from how the regulator had previously considered such products.

Canary Capital's Solana Trust joined a growing list of proposed ETFs on Tuesday seeking public comment to bring SOL investing to Wall Street, alongside similar filings from VanEck, 21Shares, and Bitwise.

The development follows Grayscale's Solana ETF application last week, with the SEC's acknowledgment, positioning it as a potential bellwether for a broader group of proposals.

"The SEC has done a big about-turn on the Solana ETF—from refusing to even entertain such an investment product to acknowledging Grayscale's amended SOL ETF application," Chris Chung, founder of Solana swap platform Titan, told Decrypt in an emailed statement.

The procedure triggers a 21-day review period for the SEC to approve, deny, or extend its decision deadline.

"There's a good chance this will end up being a historic day for Solana in the same way January 10, 2024, was a historic day for Bitcoin," Chung told Decrypt, referring to the regulator’s approval for a Bitcoin-based ETF last year.

On the road

Observers expect several crypto ETFs beyond Ethereum and Bitcoin to gain approval within the year, though the timing remains uncertain.

An ETF approval "will position Solana as the blockchain for mass adoption," Chung said.

However, previous comments from Canary Capital CEO Steven McClurg reveal a more nuanced strategy behind his company's ETF pursuits.

"It's like, 'Hey, well, if we're doing these other ones, we might as well jump in and get in on the action if something happens,'" McClurg told Decrypt in a separate interview, speaking about his company's SOL ETF filing.

McClurg's firm has intentionally targeted tokens that it considers to have clear utility, seeking funds based on Solana, XRP, Litecoin, and HBAR, while deliberately steering clear of popular cryptos such as Dogecoin.

The push for other crypto ETFs after Bitcoin and Ethereum has gained momentum under the new U.S. administration, with the SEC launching a dedicated crypto task force headed by Commissioner Hester Peirce.

"Just as modern technology does not eliminate the risks of taking to the open road, this new journey toward regulatory clarity still presents dangers," wrote Commissioner Peirce in a statement, reflecting on how technology could make crypto a "more enjoyable and less risky endeavor."