Solana Shows Potential as Spot ETF Candidate Amid Rising DeFi Activity and Institutional Moves

• Solana is emerging as a formidable candidate for a spot ETF, driven by significant increases in DeFi activity, network fee revenue, and institutional interest.

• Recent SEC requests for amended filings and notable SOL transfers between major custodial wallets underscore growing regulatory and institutional engagement.

• According to COINOTAG sources, Bloomberg Intelligence now estimates a 90% chance of Solana ETF approval, reflecting strong market confidence.

Solana’s rising DeFi metrics, SEC filing updates, and institutional moves position it as a leading contender for a spot ETF approval in 2025.

SEC’s Demand for Amended S-1 Filings Signals Progress in Solana ETF Review

The U.S. Securities and Exchange Commission (SEC) has formally requested issuers to submit amended S-1 filings by mid-June 2025, marking a pivotal step in the regulatory review process for Solana-based ETFs. This directive indicates that the SEC is actively scrutinizing the filings, particularly focusing on how staking mechanisms are incorporated into the product structure.

Bloomberg Intelligence’s recent assessment, assigning a 90% probability of approval, aligns with the SEC’s procedural momentum. This optimism is fueled by Solana’s robust network fundamentals, including an $8.8 billion total value locked (TVL) in DeFi protocols and increasing transaction fee revenue, which collectively demonstrate the network’s growing utility and investor appeal.

Source: DeFiLlama

Issuer Filings and Analyst Perspectives on Staking Inclusion

Several ETF issuers have proactively updated their SEC filings to explicitly include staking features, reflecting a strategic response to regulatory expectations. However, industry analyst James Seyffart advises caution, noting, “Possible but def not guaranteed. Could theoretically approve the SOL ETFs to launch with staking at same time they approve staking in ETH ETFs. But I have no insight into what will actually happen.” This highlights the inherent uncertainty despite positive signals, emphasizing the need for continued monitoring of regulatory developments.

Solana’s Network Activity and Institutional Transfers Highlight Growing Market Confidence

In the past 24 hours, Solana has led all blockchain networks in bridged net inflows, surpassing $2.5 million, and ranked third in fee generation behind Tron (TRX) and Hyperliquid (HYPE). These metrics underscore Solana’s expanding real-world usage, a critical factor for ETF viability as it reflects genuine demand and network robustness.

Stablecoin supply data reveals a slight outflow from Solana, indicative of healthy liquidity rotation rather than capital flight, further supporting the narrative of a dynamic and active ecosystem.

Source: X

Significant SOL Transfer Suggests Institutional Positioning Ahead of ETF Approval

A recent transfer of 252,847 SOL tokens, valued at approximately $39.72 million, from Coinbase Prime to FTX’s cold storage wallet has attracted attention. This sizable movement may indicate institutional repositioning or custodial adjustments in anticipation of potential ETF approval, signaling confidence from large-scale investors.

Source: X

Growing DeFi Ecosystem Strengthens Solana’s Layer 1 Position

As Solana continues to attract inflows and bolster its DeFi ecosystem, it is increasingly viewed as a serious Layer 1 blockchain contender. The combination of rising TVL, fee revenue, and institutional interest presents a compelling case for market participants and regulators alike, reinforcing Solana’s potential to secure a spot ETF approval.

Conclusion

Solana’s recent network performance, regulatory progress, and institutional activity collectively signal a maturing ecosystem poised for significant developments in ETF offerings. While uncertainties remain regarding staking integration and final SEC decisions, the prevailing data and expert analyses suggest that Solana is well-positioned to become a leading Layer 1 asset in the evolving crypto ETF landscape. Investors and stakeholders should continue to monitor regulatory updates and network metrics closely to capitalize on emerging opportunities.