Canary, Franklin Templeton, and VanEck revise S-1s for Solana ETFs, adding staking and custody details, nearing SEC approval.
The proposals for the Solana ETF are progressing. The U.S. Securities and Exchange Commission (SEC) has received resubmitted S-1s from certain firms. Franklin Templeton, VanEck, and Canary Capital all submitted revised S-1s. This suggests that they are engaged in ongoing discussions with regulators and that there is substantial interest in ETFs based on Solana.
Staking and additional custody options are included in the revised Solana ETF filing
The most significant modification will be that Marinade Finance will be the sole provider that assists with staking for the Solana ETF. The trust will designate most of its Solana to Marinade’s platform for at least two years, as confirmed by the amended filing.
Staking rewards will be earned, reinvested after fees, and used to enhance the trust’s net asset value, as indicated in Solana ETF fee updates. The filing also introduces Marinade’s instant unbonding feature, providing liquidity for redemptions without waiting for Solana’s network cycles.
Additionally, the custody framework is broadened in the new draft. It specifies the distribution of Solana holdings between hot and cold wallets, with the custodian maintaining exclusive authority over private keys. The filing emphasizes that custody risks persist, even though investors will not directly handle tokens. The ETF’s website will disseminate daily net asset value, complete holdings, and premium or discount data to enhance transparency.
The scope of risk factors has been significantly expanded. The trust’s potential abandonment of forks or airdrops, slashing penalties, validator failures, and Solana outages are all mentioned in the amended filing. Another significant addition is the tax language. The fund will endeavor to be classified as a grantor trust for U.S. tax purposes, even though it recognizes the ambiguity surrounding the taxation of staking rewards.
A Bloomberg analyst perceives the SEC’s coordinated filings as a positive indicator
According to a Bloomberg analyst update, James Seyffart, Franklin Templeton, and VanEck have also submitted amended Solana ETF filings. The companies’ frequent filings, according to Seyffart, indicate that they have been in continuous communication with the SEC. He also observed that additional firms will shortly submit their updated filings. Consequently, the evaluation process is perpetual and involves no regulatory pauses.
The combined filings indicate that Solana is becoming increasingly important as an institutional product. The U.S. has recently published GDP data on the Solana blockchain, demonstrating that this momentum is not limited to ETFs.
This explains the strong desire of asset managers to obtain approvals. Issuers’ willingness to comply with SEC regulations is demonstrated by their willingness to provide updates that align with regulators’ preferences. Investors will have regulated access to the token, similar to Bitcoin and Ethereum, following the approval of these Solana ETFs.
