- The SEC raised concerns about the structure and disclosure of Solana and Ethereum staking ETF filings.
- Despite regulatory scrutiny, Solana shows strength through rising on-chain activity and social metrics.
Plans for Ethereum [ETH and Solana [SOL] staking ETFs expected in June 2025 have hit a snag.
For the unaware, REX Shares and Osprey Funds recently filed with the U.S. Securities and Exchange Commission (SEC) to sell staking-based ETFs on the two blockchains.
But initial responses from the agency indicated issues.
The SEC flagged concerns around product structure and transparency, especially regarding how staking rewards are earned and distributed, issues consistent with the agency’s broader scrutiny of staking mechanisms.
Staking interest gains momentum despite SEC pushback
While regulatory mood remains uncertain, Solana’s on-chain activity tells a different story.
In a very recent encounter, there was a whale staking transaction. A massive 4 million SOL—almost $621 million worth—was staked into validator ID HZKopZY.
This validator is running the newest version of Jump Crypto’s Firedancer client (v0.503.20214) and has jumped up to #16 rank among validators according to a renowned analyst’s tweet.
This move shows that institutional investors are not spooked by ETF uncertainty. Instead, SOL investors and traders alike are doubling their bets on Solana’s long-term network potential.
Source: Solana Explorer
Surging social mentions indicate increasing interest
Solana didn’t just gain on-chain traction.
The altcoin also saw a massive spike in social mentions, climbing to the highest level in 30 days, up by over 37,000 mentions in 24 hours.
The increase confirms that the altcoin sentiment is shifting in a positive direction among the community, despite the ongoing regulatory headwinds.
Social metrics are good leading indicators of investor sentiment, especially within the crypto world.
The intersection of concentrated staking and social momentum could be a price floor, if not a catalyst, for SOL in the short to mid-term.
Source: X
Conservative optimism for SOL
Though the SEC comments are bearish on prospects for an ETF, they have not shaken up the Solana ecosystem.
Validators are upgrading. Whales are staking. And the community is louder than ever. In contrast to the uncertain ETF path, Solana’s on-chain fundamentals continue to trend positively.
Though the regulatory path is still uneven, the on-chain narrative appears much smoother.
