TLDR
- VanEck, Franklin, Grayscale and others filed updated Solana ETF drafts Friday.
- Updates allow both cash and in-kind redemptions of ETF shares.
- Marinade Finance confirmed as staking provider for Solana ETF structures.
- Custody and risk disclosures expanded to cover slashing and outages.
Several major asset managers, including VanEck, Franklin, Fidelity, and Grayscale, updated their filings for spot Solana ETFs on Friday. The revisions show continued engagement with the U.S. Securities and Exchange Commission as issuers adjust terms for potential approval.
Asset Managers Update Solana ETF Filings
A group of leading asset managers has submitted updated filings for spot Solana exchange-traded funds. Firms including VanEck, Franklin, Grayscale, Fidelity, Bitwise, CoinShares, and Canary/Marinade made revisions on Friday.
The changes follow a pattern seen last week when several of the same issuers updated their XRP ETF filings. In both cases, the updated language focused on redemption terms, allowing shares to be redeemed for cash or the underlying cryptocurrency.
Positive Engagement with the SEC
Bloomberg ETF analyst James Seyffart described the synchronized updates as “likely just positive back and forth” between issuers and the U.S. Securities and Exchange Commission. He suggested the filings show that discussions are ongoing and that firms are adjusting to regulatory feedback.
The SEC has not confirmed any timeline for decisions on Solana ETFs. However, the updates indicate that asset managers continue to pursue approval. The trend mirrors the process seen before the authorization of Bitcoin and Ethereum spot ETFs earlier this year.
Staking and Custody Framework
The new drafts confirm that Marinade Finance will serve as the staking provider for Solana ETFs. The trust will allocate most of its holdings to Marinade’s platform for at least two years, with rewards reinvested after fees to increase the fund’s net asset value.
The filings also describe Marinade’s instant unbonding feature, which will provide liquidity for redemptions without waiting for network cycles. This structure aims to make the ETF more efficient for investors seeking access to Solana through regulated products.
Custody provisions were expanded in the updates. Solana holdings will be split between hot and cold wallets, with the custodian holding private keys. Investors will not interact directly with tokens. To improve transparency, daily net asset value, full holdings, and premium or discount data will be published on the ETF’s website.
Risk and Tax Disclosures
The amended filings also widened the list of risk factors. These include possible validator failures, Solana network outages, slashing penalties, and the chance of forks or airdrops being abandoned. Issuers emphasized that custody risks remain even under controlled frameworks.
Tax language was another area of change. The trusts seek to be classified as grantor trusts for U.S. tax purposes. However, the filings acknowledge uncertainty over how staking rewards will be treated under existing tax rules. This remains an area of focus for regulators and issuers alike.
Broader Market Context
The updated Solana ETF filings come at a time of rising institutional interest in altcoin products. The first Solana ETF in the United States, the REX-Osprey SOL and Staking ETF, launched in July through a separate process but has not matched flows seen in Bitcoin or Ethereum ETFs.
The momentum is nonetheless growing, with both futures and staking-based Solana funds already introduced. Analysts suggest that ongoing revisions, combined with active dialogue with the SEC, may indicate that asset managers are positioning for eventual approval.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
