The U.S. Securities and Exchange Commission (SEC) has extended the deadlines for reviewing Grayscale's proposals to convert its Solana and Litecoin trusts into exchange-traded funds (ETFs). These delays are necessary for regulatory compliance and investor protection.
Extension of Solana and Litecoin ETF Review
The SEC has now until August 11 to decide on the Solana ETF and until October 10 for the Litecoin ETF. These delays are part of a routine evaluation process to ensure compliance with investor protection standards.
Discussion of New ETF Proposals
Additionally, the SEC has opened a public comment period on two other ETF-related proposals. One concerns a new Dogecoin ETF from 21Shares, seeking to register under Nasdaq Rule 5711(d) for commodity-based trust shares. The other involves an amendment to BlackRock's iShares Bitcoin Trust, proposing a shift from a cash-only to an in-kind redemption model.
Expectations for ETF Analysis and Redemption Model Change
Analysts expect ongoing ETF delays, as indicated by Polymarket, which assigns an 82% chance of approval for Grayscale's Solana ETF and an 80% chance for the Litecoin ETF by the end of 2025. The Dogecoin ETF is assigned a 62% chance of approval by year-end.
The SEC continues its thorough regulatory review of ETF proposals, which raises expectations among analysts regarding the future of the cryptocurrency market. The opening of public comments for Dogecoin and changes to BlackRock highlight the active interest in the regulatory landscape.
