Boston, Massachusetts — The U.S. Securities and Exchange Commission has postponed its decision regarding Fidelity’s application for a Solana spot exchange-traded fund (ETF), delaying potential altcoin ETF approvals further into the year. Analysts are now projecting that the approval process might extend into the fourth quarter.

Fidelity’s application, submitted on July 7, has entered a comment and rebuttal phase under the SEC’s Commodity-Based Trust Shares category. The regulatory body’s ongoing review may impact not only Fidelity’s ETF but also a wave of other altcoin ETF applications anticipated to receive approval this summer.

James Seyffart, a senior ETF analyst, stated that the delay was foreseen and is linked to the SEC’s intended framework for digital asset exchange-traded products. Industry insiders are keenly watching for any developments from the SEC regarding this framework, which is expected to introduce new guidelines and disclosure requirements for cryptocurrency ETFs.

The SEC has requested issuers to refile amended applications by the end of July. While Seyffart has indicated that approval for some ETFs might still be feasible in the third quarter, he cautioned that the new guidelines could significantly adjust the timeline. Nate Geraci, another industry analyst, echoed this sentiment, suggesting that some issuers are not expecting the SEC’s proposed crypto ETF approval framework to become operational until early fall, which could stall the approval of any spot crypto ETFs until then.

The implications of this delay extend beyond just Fidelity. The SEC’s recent conversion of the Grayscale multi-crypto index fund into an ETF has also been halted pending the establishment of the new regulatory framework. This convoluted timeline illustrates the challenges facing cryptocurrency investment vehicles as regulatory scrutiny intensifies.

Seyffart further emphasized the distinction between different ETF applications, noting that existing ETFs such as the REX-Osprey SOL ETF staking fall under a different regulatory structure. Despite the delays, he predicts that several altcoin ETFs that include staking features could receive approvals simultaneously once the SEC’s guidelines are finalized.

Among those waiting for a decision are ETFs related to popular cryptocurrencies such as Litecoin, Ripple, Dogecoin, and Cardano, all of which face an SEC decision deadline in October.

In response to the recent developments, Solana’s market value experienced a slight drop, falling from $154 to $147. Market data highlights expectations for SOL to trade within a defined range of $140 to $160 in the short term, as options traders positioned themselves around the current price levels. With bearish bets concentrated between $140 and $144, investors appear to be bracing for a period of stability amid ongoing regulatory uncertainty.