Approval for Solana ETF is Near: New Fee Regulations Have Arrived

Recently, there have been significant developments regarding Solana (SOL) and XRP exchange-traded funds (ETFs) that have caught the attention of investors. Canary Capital has completed the registration statement amendments for both assets, accelerating the approval process. According to the update, both the Canary XRP ETF and the Canary Marinade SOL ETF will trade with a management fee of 0.50%. This is considered an important step for investors.

Canary Capital has positioned itself competitively with these new regulations after previously setting a fee of 0.95% for its Hedera Hashgraph (HBAR) and Litecoin (LTC) ETFs. Bloomberg ETF analyst Eric Balchunas described the recent update as a "6th amendment," indicating progress in the process. Balchunas also emphasized that there would be no deduction from staking rewards for the Solana ETF. However, this rate is higher compared to the 0.20% fee announced earlier this week for the Solana staking ETF by Bitwise.

Approval processes for ETFs in the cryptocurrency market have recently garnered more interest. This is attributed to former President Donald Trump appointing crypto-friendly Paul Atkins as the chair of the U.S. Securities and Exchange Commission (SEC). Under Atkins' leadership, the SEC aims to reduce uncertainties regarding digital asset markets and implement new ETF listing standards. However, the recent U.S. government shutdown partially disrupted this approval process.

Particularly, the expiration of application deadlines for Solana and Litecoin ETFs during this period created uncertainty for investors. Nevertheless, sources suggest that once the government reopens, the SEC could approve a large number of individual cryptocurrency ETF applications collectively. Currently, the SEC's focus is on recorded statements. Therefore, there is no definitive information regarding the approval date for Canary Capital's XRP and Solana ETF.

As a result, important points for investors to monitor include developments in the ETF approval processes and fee regulations. The steps taken for Solana could signal changes in the market and it is important to continuously evaluate investment opportunities.