The SEC has acknowledged Grayscale's ETF proposals for digital assets Solana and Litecoin, indicating a significant shift in its stance towards crypto investments.
SEC Acknowledgement of Filings
The SEC's recognition of a Solana ETF filing is a first, possibly indicating a more favorable view of cryptocurrency investment products. This development comes amid leadership changes at the SEC, offering hope for a more supportive regulatory environment. On February 6, the SEC invited public comments on the ETF filings, with a 21-day window for feedback after publication in the Federal Register.
Market Implications
Recognition of the Solana ETF is particularly significant given previous rejections by the SEC. Bloomberg ETF analyst James Seyffart noted this as an important shift, especially since Solana had been classified as a security in past legal cases. Fox Business journalist Eleanor Terrett highlighted that the SEC previously pressured the Cboe to withdraw Solana ETF applications.
Future Outlook
Recently, the Cboe resubmitted Solana ETF applications for firms like Bitwise, VanEck, 21Shares, and Canary Capital, hopeful for approval. Seyffart estimates a final decision on Solana ETF could be around October 11. The SEC also acknowledged NYSE's Grayscale Litecoin ETF filing, marking a second consideration of such an application. Litecoin might be the next digital asset to gain SEC approval for a spot ETF.
While the SEC's acknowledgement of the Solana and Litecoin ETF filings provides hope for further support of crypto tools, the actual approval of these products remains uncertain.
