SEC Acknowledges Grayscale's Solana ETF Filing, Marking a Shift in Approach to the Crypto Industry

The US Securities and Exchange Commission (SEC) has made a significant step towards approving Solana and Litecoin spot exchange-traded fund (ETF), marking the change in how the agency approaches the crypto industry.

The US Securities and Exchange Commission (SEC) has taken a key step towards approving Solana and Litecoin spot exchange-traded fund (ETF), marking a shift in how the agency approaches the crypto industry.

First Acknowledgment for Solana ETF

On Thursday, the SEC officially acknowledged Grayscale's amended filing for a spot Solana ETF, triggering the start of its formal review.

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The acknowledgment sets in motion the agency's standard timeline, typically a 240-day process with multiple decision deadlines, and is considered a second stage in the approval process for ETFs.

While procedural, the step is particularly noteworthy for Solana. The SEC had previously rejected similar filings and even directed Cboe (Chicago Board Options Exchange), one of the largest US stock and options exchanges, to withdraw their Solana ETF filing.

“We are now in new territory, albeit just a baby step, but seemingly the direct result of leadership change,” commented Eric Balchunas, Bloomberg's Senior ETF analyst.

Notable bc this is the first time an ETF filing tracking a coin that had prev been called a "security" has been acknowledged by SEC. Only six weeks ago the Genz-led SEC told CBOE to withdrawal their Solana 19b-4. So we are now in new territory, albeit just a baby step, but… https://t.co/XiRyA8g3R7

NYSE, the securities exchange, filed a request on January 24 with the SEC on behalf of Grayscale for a Solana ETF.

More ETF Filings Recognized

In addition to the Solana spot ETF, the SEC on Thursday also acknowledged several other crypto ETF filings, including Grayscale's and Canary Capital's Litecoin ETF and Nasdaq's request for in-kind redemptions on BlackRock's iShares Bitcoin ETF, allowing investors to exchange Bitcoin for ETF shares directly rather than through cash.

According to Bloomberg ETF analyst James Seyffart, a spot Litecoin ETF could be the next to gain regulatory approval.

“Sticking to my call/view that Litecoin will be the next digital asset to be approved by the SEC for a spot ETF wrapper,” he wrote on Twitter.

Sticking to my call/view that Litecoin will be the next digital asset to be approved by the SEC for a spot ETF wrapper 👀 https://t.co/6aDONSREWN

The Bigger Picture

While the SEC's ETF acknowledgment does not yet signal approval, the move comes as leadership changes at the SEC fuel growing expectations for more crypto-friendly regulations under the new administration.