Solana ETF Approval on Hold Until October 2025 Amid Inflation-Driven Market Turbulence

The US SEC has delayed its decision on Solana ETF proposals from Bitwise and 21Shares to October 16, 2025, citing the need for additional review as market volatility and inflation concerns weigh on investor sentiment.

SEC Extends Review Period

The US Securities and Exchange Commission (SEC) has postponed its decision on two proposed Solana exchange-traded funds (ETFs) from Bitwise and 21Shares, setting a new deadline of October 16, 2025. Both proposals aim to list and trade shares on the Cboe BZX Exchange under its Commodity-Based Trust Shares framework.

In a filing released on Thursday, the SEC stated the extension would allow “sufficient time to consider” the proposals, which were initially due for a decision on August 17. The maximum 60-day delay permitted under regulatory guidelines will mark the final deadline for approval or denial.

Market Reaction and Price Moves

The delay comes as Solana’s price trades near $190, down from almost $210 earlier in the week. CoinGlass data recorded $70 million in SOL liquidations over the past 24 hours, reflecting heightened market volatility. The pullback followed hotter-than-expected US inflation data, with the July Producer Price Index rising 0.9% month-on-month, well above expectations of 0.2%. The annual rate climbed to 3.3%, exceeding forecasts of 2.5%, pressuring risk assets across markets.

Despite the short-term retreat, Solana had touched $209 earlier on Thursday, supported by strong derivatives market activity. CoinGlass noted open interest in SOL futures nearing record highs at $12 billion, suggesting traders are positioning for continued price momentum.

Wider Regulatory Delays

According to Bloomberg ETF analyst James Seyffart, the SEC has also delayed decisions on proposals from Canary Funds and Marinade Finance. Seyffart indicated that further postponements may be limited, with standard spot Solana ETFs likely to be approved by mid-October 2025.

Nate Geraci, President of The ETF Store, told CNBC that he expects a wave of altcoin ETFs to enter the market soon, citing regulatory progress and strong inflows into Bitcoin and Ethereum products. He added that such developments could accelerate institutional adoption of cryptocurrencies beyond the two largest digital assets.

Institutional Outlook

Andrejs Balans, Risk Manager at YouHodler, noted that while Solana and other projects like Polkadot are gaining institutional attention, they remain in the “experimental” category for many major capital allocators.

He claimed,

“Only a few of these are likely to survive long enough to gain serious attention.”

The SEC’s decision in October 2025 is set to be a key moment for Solana’s push into mainstream investment products. Until then, the market will continue to weigh macroeconomic pressures, regulatory developments, and investor appetite for altcoin ETFs.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice