Solana ETFs Eligible for Approval by September 17 Under Cboe’s Proposed Listing Requirements

The Chicago Board Options Exchange (Cboe) has filed a proposal to standardize crypto asset Exchange-Traded Products (ETPs), with NASDAQ and NYSE expected to follow suit soon. If accepted, these new requirements could streamline the filing process and potentially earmark Solana ETFs for approval by September 17, 2025.

Six Months of Futures Trading Required for New ETFs

In a filing dated July 30, Cboe proposed a significant change to how crypto asset ETF filings are processed by the U.S. Securities and Exchange Commission (SEC). The new rule would allow an issuer’s shares to be listed if the underlying commodity has been traded on a U.S. exchange via a futures contract for at least six months. Bloomberg ETF Analyst James Seyfartt asserted that this ruling effectively “outsources the decision making for which digital assets will be allowed in an ETF wrapper” to the Commodity Futures Trading Commission (CFTC), which approves futures contracts. This standardization shifts the responsibility from the SEC to the CFTC for determining eligible crypto assets.

Multicoin Capital General Counsel Greg Xethalis noted the proposal also supports the inclusion of staking in future crypto ETFs. Specifically, issuers must have written liquidity risk policies if less than 85% of their assets are readily redeemable.

Given that natively-staked $SOL has a 2-3 day unstaking period, this requirement aims to protect investors from illiquid redemption risks. The ruling favors staking providers such as Marinade Finance, which plans to offer instant unstaking on native $SOL, potentially becoming a vital part of liquidity risk policies.

$SOL ETF Approvals Expected in September?

Cboe’s filing is expected to be submitted to the Federal Register this week, triggering a 21-day comment and review period. If approved, the rule would establish a clear timeline for Solana ETF approvals. Under the new rule, the underlying assets in prospective crypto ETFs must have been available as futures contracts for six months before approval. Since Solana futures contracts launched on March 17, 2025, the earliest possible Solana ETF listing date would be September 17, 2025. Currently, the SEC’s soft deadline for Solana ETF approvals is October 10, 2025. If Cboe’s proposal is accepted, the nine prospective Solana ETFs could be approved between September 17 and October 10, 2025.

Solana Ecosystem Leaders Advocate for Liquid Staking Tokens (LSTs)

Addressing liquidity and redemption concerns, prominent Solana ecosystem figures submitted a public letter to the SEC advocating for Liquid Staking Tokens (LSTs). LSTs enable holders to earn staking rewards without the risks associated with unstaking periods. If Cboe’s proposed rule change passes, LSTs like $jitoSOL could help meet the requirement that 85% of assets be readily redeemable. $jitoSOL, Solana’s largest LST by market cap, is currently part of REX-Osprey’s Solana Staking ETF, $SSK.

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Source: SolanaFloor

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Frequently Asked Questions (FAQ)

ETF Approval Process

Q: What is the significance of Cboe's proposed rule change for Solana ETFs? A: Cboe's proposal aims to standardize the listing requirements for crypto asset ETPs. If approved, it could allow for Solana ETFs to be approved as early as September 17, 2025, by requiring underlying assets to have futures contracts traded for at least six months. Q: Who approves futures contracts for digital assets? A: The Commodity Futures Trading Commission (CFTC) is responsible for approving futures contracts for digital assets. Q: What is the new requirement for listing crypto asset ETFs? A: The new rule proposed by Cboe requires that the underlying commodity for a crypto asset ETF must have been traded on a U.S. exchange via a futures contract for at least six months. Q: When are Solana ETFs potentially eligible for approval? A: Based on the launch of Solana futures contracts on March 17, 2025, the earliest possible approval date for Solana ETFs under the proposed rule is September 17, 2025. Q: What is the SEC's current deadline for Solana ETF approvals? A: The SEC's current soft deadline for Solana ETF approvals is October 10, 2025.

Staking and Liquidity in ETFs

Q: How do proposed rules address staking in crypto ETFs? A: The proposal supports the inclusion of staking in future crypto ETFs and requires issuers to have written liquidity risk policies if less than 85% of their assets are readily redeemable. Q: What are Liquid Staking Tokens (LSTs) and their role in ETFs? A: LSTs allow holders to earn staking rewards without the risks of unstaking periods. They can help meet the requirement of 85% asset redemption, making them crucial for crypto ETFs. Q: Which LST is mentioned in relation to Solana ETFs? A: jitoSOL, Solana's largest LST by market cap, is mentioned as being part of REX-Osprey's Solana Staking ETF ($SSK). Q: How do staking providers like Marinade Finance fit into these regulations? A: Marinade Finance, with its plan for instant unstaking on native $SOL, could play a vital role in fulfilling liquidity risk policies for Solana ETFs.

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Crypto Market AI's Take

The potential approval of Solana ETFs by September 17, 2025, marks a significant step forward in the institutional adoption of cryptocurrencies. This development, driven by Cboe's proposed rule standardization, reflects a maturing market where regulatory clarity is paving the way for more mainstream investment products. The inclusion of liquid staking tokens (LSTs) as a means to address redemption risks is particularly noteworthy, as it highlights the integration of advanced blockchain functionalities into traditional finance. At Crypto Market AI, we are at the forefront of providing the tools and insights necessary to navigate this evolving landscape. Our platform offers AI-powered trading bots designed to leverage market movements, including those influenced by such regulatory shifts. Furthermore, our comprehensive market analysis and news hub keep investors informed about the latest developments, helping them make strategic decisions in the fast-paced world of digital assets.

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