U.S SEC Pushes Franklin Templeton’s Solana ETF Decision to Late 2025

The Solana ETF proposal is part of a broader wave of filings aimed at expanding access to digital assets through regulated financial markets. Unlike futures-based funds, which track derivative contracts, spot ETFs hold the underlying token itself, offering investors regulated exposure without requiring them to hold the token physically. Approval of any such product tied to Solana would mark a notable step for altcoin investment in institutional portfolios.

The SEC’s delay in considering Solana ETF proposals appears to stem from concerns over market manipulation, adequacy of surveillance mechanisms, investor protection, and secure custody of digital assets. Solana’s relatively newer market compared to Bitcoin or Ethereum means that regulators are scrutinizing how mature the trading environment is.

A major factor in the postponement is the large number of crypto and altcoin ETF applications under review, many of which require amendments, public comments, and review of technical risk factors. For many applicants, including some seeking Solana-based funds, these delays do not yet indicate approval or rejection—they reflect the regulatory process being used in full.

For market participants, the extended review offers opportunity to improve proposals. At the same time, delays create uncertainty about when or whether spot altcoin ETFs will be allowed. While approved Bitcoin and Ethereum ETFs have paved the way, regulators appear cautious regarding assets with shorter histories.

As of mid-2025, SEC watchers expect some Solana ETF applications may reach resolution by around October 2025, while others, including certain filings for XRP, have been extended into November. Outcomes will be closely watched as indicators of how far U.S. regulation will go in accommodating altcoin-based ETFs.

The delay is also a reflection of the SEC’s cautious posture toward innovation in financial markets. By extending deadlines to the furthest possible dates, the regulator demonstrates that it is unwilling to compromise investor protection standards in the face of industry pressure. The outcome will serve as a bellwether for how far the U.S. market is prepared to go in embracing digital assets beyond Bitcoin and Ethereum.

What distinguishes the current wave of altcoin ETF reviews from earlier approvals is the intensity of the scrutiny applied. Regulators are demanding more detail on how reserves are managed, how custody arrangements prevent loss or misuse, and how issuers intend to monitor trading activity across multiple venues. Solana’s fast growth and rising market presence make it an attractive candidate for institutional products, but its relative lack of infrastructure compared to Bitcoin highlights the challenges regulators face.

The months ahead will likely involve ongoing dialogue between applicants and the Commission, with issuers continuing to refine their filings to meet heightened expectations. For now, the extended timeline signals that approval will not come quickly, but it leaves open the possibility that the U.S. market could eventually see its first spot Solana ETF if concerns are addressed to regulatory satisfaction.

Franklin Templeton’s proposal remains under review, with the Commission’s ruling not expected until October 2025. The decision on its separate spot XRP ETF filing is scheduled for November of the same year. These outcomes will be closely watched, as they will indicate whether digital assets beyond the largest two cryptocurrencies can secure a foothold in the U.S. ETF market. The answer will shape how investors and regulators alike view the future of altcoin-based financial products.