SEC Signals Shift: Grayscale’s Solana & Litecoin ETFs Move Forward
The SEC has acknowledged Grayscale’s Solana and Litecoin ETF filings, marking a key step that could signal a shift in crypto regulations.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s proposals for Solana and Litecoin exchange-traded funds (ETFs), opening the door for public feedback. This marks the first time the SEC has recognized a Solana ETF filing, signaling a potential shift in its approach to cryptocurrency investment products.
The SEC's announcement comes amid leadership changes, sparking optimism about a more crypto-friendly regulatory environment. On February 6, the agency invited public comments on the filings, with a 21-day period to submit opinions after their publication in the Federal Register.
This acknowledgment is particularly significant for Solana (SOL) ETFs, as the SEC had previously declined similar applications. Bloomberg ETF analyst James Seyffart pointed out that this move is noteworthy, considering past refusals. He suggested that it could reflect a changing perspective on Solana, which had previously been categorized as a security in legal cases against crypto firms. Fox Business journalist Eleanor Terrett also highlighted the shift, noting that the SEC had pressured the Chicago Board Options Exchange (Cboe) to withdraw previous Solana ETF applications while Gary Gensler was still in charge.
Bloomberg’s senior ETF analyst Eric Balchunas called this a small but important step, emphasizing that it's the first time the SEC has recognized a financial product linked to an asset it previously labeled as a security. He attributed the decision to a possible shift in the agency’s stance under new leadership.
Recently, the Cboe resubmitted 19b-4 filings for Solana ETFs on behalf of several firms, including Bitwise, VanEck, 21Shares, and Canary Capital. These firms are hopeful that the SEC’s changing attitude will eventually lead to approval. Seyffart estimated that the SEC’s final decision on the Solana ETF will likely come around October 11.
Alongside Solana, the SEC also acknowledged the NYSE’s application for a Grayscale Litecoin ETF, marking the second time the regulator has considered a Litecoin (LTC) ETF. Seyffart predicted that Litecoin could be the next digital asset to receive SEC approval for a spot ETF.
The SEC also took a step forward with the iShares Bitcoin Trust ETF (IBIT) by acknowledging a Nasdaq filing related to in-kind creations and redemptions. Nate Geraci, president of The ETF Store, called this a necessary move but criticized how long it had taken.
While the SEC’s latest decisions mark progress for crypto ETFs, actual approval is still uncertain. The impact of the SEC’s new leadership under President Trump remains to be seen, but many investors are hopeful that more cryptocurrency ETFs will gain approval in the near future.
