SEC Delays Solana ETF Decision to October 16, 2025 – Market Reacts with $70M in Liquidations
The U.S. Securities and Exchange Commission has postponed its ruling on the Bitwise and 21Shares Solana ETFs until October 16, 2025, citing the need for further review. The delay triggered an immediate sell-off, sending SOL down from $210 to $190.
Another Wait: SEC Pushes Back Solana ETF Verdict
In a move that echoes past crypto ETF sagas, the U.S. Securities and Exchange Commission (SEC) has extended its review of proposed Solana exchange-traded funds, delaying a final decision until October 16, 2025. The affected filings—submitted by major asset managers Bitwise and 21Shares—were initially expected to receive approval or rejection in August 2025.
The SEC cited the need for “sufficient time to consider the proposed rule change and issues raised therein,” a standard justification used in previous delays for Bitcoin, Ethereum, and other digital asset ETFs. While not a rejection, the extension signals ongoing regulatory caution around altcoins and their classification under U.S. securities law.
Market Reaction: Price Plunge and Mass Liquidations
The announcement hit markets like a shockwave. Solana’s price, which had been trading near $210, swiftly dropped to $190—a 9.5% decline in a single session. The move triggered a cascade of forced exits, with $70 million in long positions liquidated across major derivatives platforms in under 24 hours.
Traders had priced in a higher probability of approval, especially after Solana futures became available on regulated venues like Coinbase Derivatives—a factor some analysts believed met the SEC’s informal "listing standards" for ETF eligibility.
Now, with two more months of uncertainty ahead, sentiment has turned cautious. Open interest in SOL futures has declined, and spot trading volume remains subdued.
A Familiar Pattern: History Repeats for Crypto ETFs
This delay follows a well-worn script. The SEC previously postponed decisions on:
- Bitcoin ETFs — multiple times before final approval in January 2024
- Ethereum ETFs — delayed over a dozen times before launching in mid-2024
In each case, short-term volatility followed the extension, but prices eventually recovered—and often surged—once clarity arrived.
Experts suggest Solana may follow the same trajectory. “Regulatory delays are painful in the moment,” said a senior analyst at VanEck, “but they’re often a sign that the process is working, not failing.”
What’s at Stake for Solana?
An approved ETF would be a transformative milestone for SOL:
- It would open the floodgates for institutional capital
- Provide a regulated on-ramp for pension funds, ETFs, and traditional investors
- Legitimize Solana as a non-security digital asset in the eyes of regulators
Without it, the network remains reliant on retail momentum and crypto-native investors—limiting its upside in traditional financial markets.
However, Solana’s fundamentals remain strong:
- Booming NFT and meme coin activity
- Rapid growth in real-world asset tokenization
- Over 2 million daily active addresses
These metrics may ultimately support the case for approval, but only if the SEC is convinced of sufficient market integrity and decentralization.
The Road to October 16
Between now and the next decision date, all eyes will be on:
- SEC communications – any hints about required disclosures or structural changes
- Exchange listings – continued availability of SOL futures on regulated platforms
- On-chain transparency – efforts by the Solana Foundation to demonstrate decentralization
If history holds, the path to approval is rarely straight—but it does exist.
