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SOL jumps as SEC asks issuers to resubmit Solana ETF S-1 filings: Blockworks

  • The SEC has requested that potential Solana ETF issuers resubmit their S-1 filings within the week.
  • Issuers are reportedly adjusting the language of in-kind redemption and staking.
  • SOL is up 3% and could leap to $183 if it clears an upper descending channel boundary.

Solana (SOL) rose 3% on Tuesday following reports that the Securities & Exchange Commission (SEC) asked firms to resubmit their Solana exchange-traded funds (ETF) S-1 filings within the upcoming week, according to Blockworks.

SOL sees gains as SEC could approve Solana ETFs in the coming weeks

The SEC requested firms that filed for Solana ETFs resubmit their S-1 registration statements in the upcoming week, according to a Blockworks report on Tuesday, citing private sources. The agency requested that issuers modify the language of in-kind redemptions and also outline their approach to staking with the ETFs.

The report mentioned that the SEC is open to allowing staking for Solana ETFs, pending potential approval. This is in stark contrast to the agency's stance under former Chair Gary Gensler, as evidenced by US spot ETH ETF issuers adjusting their filings to remove language related to staking.

The SEC would review the new SOL ETF submissions and give responses on the filings within the next 30 days, the report claimed. This suggests the regulator may be eyeing an early decision concerning the funds. Blockworks stated that Solana ETFs could be approved within three to five weeks.

Several asset managers are awaiting the SEC's final decision on their Solana ETF filings, including VanEck, 21Shares, Grayscale, Bitwise, Canary Capital, Franklin Templeton, and Fidelity.  The race for a Solana ETF began after VanEck submitted its S-1 filing last year, with 21Shares and Bitwise following behind.

CoinShares may also be looking to add its name to the list of firms seeking approval after registering a CoinShares Solana ETF in Delaware. The development hints at a possible S-1 filing from CoinShares in the coming weeks.

Likewise, Bloomberg ETF analysts Eric Balchunas and James Seyffart noted that Rex-Osprey is attempting to use "legal workarounds" to launch its Solana product and hasten the SEC's decision.

"Get ready for a potential Altcoin ETF Summer with Solana likely leading the way," said Eric Balchunas in an X post on Tuesday.

The analysts' recent update to their crypto ETF approval odds gave Solana ETFs a 90% chance of SEC approval. James Seyffart also stated in May that the SEC may not approve altcoin ETFs until late June or early July if it were to make an early decision.

Solana could leap to $183 if it clears key descending channel resistance

Solana is up 3%, testing its 50-day Simple Moving Average (SMA) and the $163 resistance following the report. If it holds the 50-day SMA as support and crosses above the upper boundary line of a key descending channel, it could rise to test the 200-day SMA and $183 resistance. On the downside, SOL could find support at $142.

SOL/USDT daily chart

The Relative Strength Index (RSI) has crossed above its moving average and neutral level lines, signaling rising bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is on the verge of flipping bullish and crossing above its moving average red line. A successful crossover could strengthen the bullish pressure.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

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