The U.S. Securities and Exchange Commission (SEC) has taken an important step by acknowledging Grayscale’s revised application for a spot Solana (SOL) ETF. Previously, such applications were rejected.
Initial Steps for Solana ETF
James Seyffart, an ETF analyst for Bloomberg, said previous rejections hinged heavily on technical classification questions. Eric Balchunas, also a Bloomberg analyst, described the decision as significant and speculated it might reflect new agency leadership. It remains a preliminary step but raises hopes for eventual authorization.
Ongoing Regulatory Challenges
However, regulatory hurdles continue to exist. The SEC regards Solana as a security, complicating its approval under a commodity-based ETF framework. Ongoing legal proceedings against exchanges Binance and Coinbase, both of which include Solana as an unregistered security, could introduce additional delays as well.
Prospects and Future Steps
Grayscale is not the sole company seeking a Solana ETF. Other applications filed via the Cboe BZX Exchange have been submitted by asset managers like 21Shares, Bitwise, VanEck, and Canary Capital. Meanwhile, the SEC is also reviewing Grayscale’s application for a spot Litecoin ETF, which analysts believe has the highest chance of approval after Bitcoin and Ethereum ETFs. Despite the SEC’s acknowledgment of Grayscale’s Solana ETF filing, it doesn’t guarantee approval, but it is an encouraging step.
As the October 11 deadline approaches, investors and industry experts will be closely watching for updates. The outcome of legal disputes and regulatory decisions will ultimately determine the future of Solana and other crypto ETFs in the U.S. market.
