Canary Capital Amends Solana ETF Filing to Include Marinade SOL Staking; SEC Delays Decision

On May 21, 2025, Canary Capital submitted an amended S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for its proposed spot Solana (SOL) exchange-traded fund (ETF).

The updated filing introduces a partnership with Marinade Finance, enabling the fund to incorporate SOL staking into its structure. This integration aims to provide investors with exposure to both Solanas price movements and staking rewards through a regulated investment vehicle.

Canary Capital Adds Marinade SOL Staking to Updated Solana ETF Filing

The ETF, now renamed the “Canary Marinade Solana ETF,” plans to utilize Marinade‘s liquid staking protocol. Staking rewards may be reinvested or distributed to shareholders, depending on the fund’s guidelines.

This development aligns with similar initiatives by other asset managers seeking SEC approval to include staking features in their crypto-based ETFs.

SEC Delays Decision on Solana ETF Applications

Despite Canary Capitals updated filing, the SEC has postponed decisions on multiple spot Solana ETF proposals, including those from Canary Capital, 21Shares, Bitwise, VanEck, and Fidelity. The Commission cited the need for additional time to consider legal and policy issues related to these applications, focusing on concerns about market manipulation and investor protection. As part of this process, the SEC has initiated formal proceedings and opened a public comment period to gather further input on the proposed rule changes.

The delays affect a growing list of proposed Solana-linked ETFs, with review periods now extended into the second half of 2025. While such procedural moves are not outright rejections, they often signal regulatory hesitation and suggest a prolonged evaluation process before any product receives approval.

Solana ETF Approval Outlook: Unlikely Before Q4, Say Analysts

The SECs cautious approach to crypto-based ETFs beyond Bitcoin and Ethereum reflects ongoing regulatory uncertainties surrounding Solana. Analysts suggest that final decisions on Solana ETFs are unlikely before the fourth quarter of 2025. Despite these regulatory hurdles, some market participants remain optimistic.

Prediction markets like Polymarket indicate an 82% chance that a spot Solana ETF will be approved before the end of 2025. As shown in the chart, this figure reflects an 8% increase in probability over recent weeks. The market has remained mostly above 75% since early February, despite volatility in April and early May.

Solana ETF Approval Odds in 2025. Source: Polymarket

The current prediction is based on trading volume exceeding $145,000, indicating active market engagement. The Polymarket forecast aligns with broader expectations that any decision will likely come in Q4 2025, even as the SEC continues to delay ETF rulings.

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