The U.S. Securities and Exchange Commission (SEC) has recognized Grayscale’s proposals for exchange-traded funds (ETFs) related to Solana and Litecoin.
This is a significant moment as it is the first time the SEC has acknowledged a Solana ETF filing. This change comes during a time of leadership shifts within the SEC, raising hopes for a more favorable regulatory environment for cryptocurrencies.
On February 6, the SEC invited public comments on these filings, allowing a 21-day period for feedback. This is particularly important for Solana (SOL) ETFs, as the SEC had previously rejected similar applications.
Bloomberg ETF analyst James Seyffart noted that this acknowledgment could indicate a change in how the SEC views Solana, which had been labeled a security in past legal cases.
Fox Business journalist Eleanor Terrett pointed out that the SEC had previously pressured the Chicago Board Options Exchange (Cboe) to withdraw Solana ETF applications while Gary Gensler was in charge.
Bloomberg’s senior ETF analyst Eric Balchunas described this as a small but significant step, marking the first time the SEC has recognized a financial product linked to an asset it once classified as a security. He believes this reflects a potential shift in the agency’s stance under new leadership.
Recently, the Cboe resubmitted filings for Solana ETFs on behalf of several firms, including Bitwise and VanEck. These firms are optimistic that the SEC’s changing attitude will lead to approval. Seyffart estimates that a final decision on the Solana ETF could come around October 11.
In addition to Solana, the SEC also acknowledged the NYSE’s application for a Grayscale Litecoin ETF, marking the second time it has considered a Litecoin ETF. Seyffart believes Litecoin could be next in line for SEC approval.
The SEC also made progress with the iShares Bitcoin Trust ETF by acknowledging a Nasdaq filing related to in-kind creations and redemptions. While these developments are promising for crypto ETFs, actual approval remains uncertain. Investors are hopeful that more cryptocurrency ETFs will receive the green light soon.
