Cboe BZX Exchange’s request for a Solana exchange-traded fund (ETF) has entered the formal review phase, potentially leading to approval later this year. This application joins a crowded field of similar filings by firms like VanEck, Fidelity, 21Shares, Bitwise, and REX Shares. REX Shares’ own Solana ETF was declared “immediately effective” in May. Optimism about approvals has been bolstered by the presence of existing CME Solana futures and the current administration’s favorable stance on cryptocurrency. However, regulatory uncertainty remains a key factor. The question of whether Solana will be classified as a commodity or a security, impacting its regulation and compliance requirements, is crucial. If deemed a security, stricter licensing would likely apply, potentially leading some exchanges to avoid listing it altogether. The SEC’s traditionally cautious approach toward new crypto ETFs has resulted in extended review periods, addressing investor protection concerns, market manipulation risks, and the asset’s legal classification, among other factors. While heightened interest from major financial institutions adds pressure for faster decisions, the final outcome will ultimately depend on the SEC balancing innovation with oversight. The implications of this decision could significantly reshape how cryptocurrencies are traded in the U.S., potentially introducing distinct rules for different assets. The SEC’s eventual verdict is expected to be a significant factor driving Solana’s integration into traditional finance in the near future.