Fidelity’s Solana ETF Stalls Again as SEC Opens 21-Day Comment Window

• The SEC delays Fidelity’s Solana ETF again, signaling ongoing reluctance to approve altcoin spot ETFs despite market demand.
• Hybrid crypto funds like REX-Osprey’s Sol + Staking ETF gain traction as altcoin ETF approvals face prolonged regulatory hurdles.

Fidelity’s bid to launch a spot Solana exchange-traded fund (ETF) has once again been delayed, as the U.S. Securities and Exchange Commission (SEC) opens a formal 21-day public comment period. The regulatory pause points out the ongoing reluctance of U.S. authorities to approve altcoin-based ETFs, despite growing market demand and recent efforts to introduce clearer guidance for crypto funds.

The proposal, submitted through the Cboe BZX Exchange, is now undergoing the SEC’s multi-phase review process. The agency will collect public input for 21 days, followed by a 35-day rebuttal window after publication in the Federal Register. While delays are common, this development shows the SEC’s cautious approach toward crypto products outside the Bitcoin and Ethereum scope.

SEC Tightens Oversight on Altcoin ETFs

Bloomberg ETF analyst James Seyffart stated that the delay was expected, pointing out the SEC’s current preference to approve only Bitcoin and Ethereum spot ETFs. The regulator’s review of Fidelity’s Solana ETF comes amid broader concerns over market manipulation, custody frameworks, and investor protections in the altcoin sector.

MORE delays. @Fidelity's Solana ETF filing was just delayed as expected.

We're still waiting for some sort of movement from the SEC on a generalized digital asset ETP framework. pic.twitter.com/8m2DSdHJYV

— James Seyffart (@JSeyff) July 7, 2025

Despite the agency’s recent move to introduce new guidance for crypto ETFs, which requires fund issuers to disclose risk factors and operational structures more clearly, the SEC has yet to approve any altcoin-focused spot ETFs. The guidance marks progress toward transparency but doesn’t appear to expedite approval timelines for products like Fidelity’s.

As traditional spot ETF approvals face delays, asset managers are experimenting with alternative fund structures to meet investor interest in altcoins. REX Financial and Osprey Funds have introduced the REX-Osprey Sol + Staking ETF, a hybrid vehicle offering indirect Solana exposure and staking rewards.

The growing adoption of hybrid models points to a shift in how crypto exposure is being delivered in traditional finance settings. With the SEC’s resistance to altcoin spot ETFs, such alternatives could gain further traction, especially as staking continues to appeal to income-focused investors.

Despite growing frustration from issuers and investors, the SEC is reportedly considering rule changes that could reduce ETF review periods from over 200 days to around 75 days. If implemented, this would significantly shorten the timeline for decisions on pending applications, including Fidelity’s Solana ETF. However, there is no official timeline for these changes to take effect.

Until reforms are enacted, altcoin ETF applicants will continue to face prolonged regulatory scrutiny. The SEC’s methodical stance reflects concerns over liquidity, volatility, and legal classification issues tied to many altcoins, including Solana.

Investors Urged to Weigh Risks Carefully

The regulatory uncertainty surrounding altcoin ETFs has implications for retail and institutional investors alike. Financial advisors recommend that investors conduct rigorous due diligence before engaging with crypto-linked products, especially those involving newer or less regulated assets.

For now, exposure to Solana may be better accessed through alternative vehicles or direct ownership via self-custody platforms. Spot ETF access remains elusive despite Fidelity’s backing and the growing role of Solana in decentralized finance and Web3 ecosystems.