Grayscale submitted its Solana (SOL) exchange-traded fund (ETF) application to the U.S. Securities and Exchange Commission (SEC) which they have now formally reviewed.
The SEC has changed its strategy regarding cryptocurrency ETFs because it approved this filing after denying past applications for similar products. SEC authorities will make their final decision about the petition by October, either in approval or rejection.
Acknowledging Solana’s ETF proposal
Grayscale’s submission to create a Solana ETF evolves the regulatory environment. SEC officials recognized the filing, which stands against past decisions because they previously denied multiple Solana ETF applications.
SEC acceptance of Grayscale’s Solana ETF application shows the Commission now takes a different approach toward categorizing cryptocurrencies as securities according to Eric Balchunas from Bloomberg Intelligence. According to Balchunas the approval indicates the SEC has formally acknowledged an initial security-based cryptocurrency filing for the first time.
Expansion of crypto ETF proposals
In addition to Solana, the SEC accepted another cryptocurrency ETF filing by Grayscale involving Litecoin (LTC). BlackRock submitted a filing for an in-kind Bitcoin ETF, while Cboe applied XRP (XRP) ETFs and their separate Bitcoin ETF request to the SEC. Crypto firms grow more confident as they continue to submit new applications to the SEC, indicating that the present government may authorize a broader scope of cryptocurrency-based ETFs.
Public comment period for litecoin ETF
The SEC has opened a public comment period for Grayscale’s Litecoin Trust’s proposed conversion into an ETF. This step follows the submission of a 19b-4 filing by NYSE Arca, which is part of the process for launching a spot crypto ETF. The SEC’s decision on this proposal will depend on the feedback it receives during this comment period.
The SEC’s ongoing shift in approach follows the departure of former Chair Gary Gensler and the appointment of Commissioner Hester Peirce to lead a crypto-focused task force. This change in leadership could have significant implications for the future of crypto ETFs.