The U.S. SEC has officially recognized Grayscale’s updated application for a spot Solana ETF.
On February 6, the United States Securities and Exchange Commission (SEC) formally acknowledged Grayscale’s updated application for a spot Solana exchange-traded fund (ETF).
The fact that prior attempts to file SOL ETFs were unsuccessful under the leadership of SEC Chair Gary Gensler illustrates the significance of this development.
In a post that he made on X, finance lawyer Scott Johnsson brought to the attention of readers that the refusals made by the regulator were due to the fact that Solana products were mistakenly classified as commodity trust shares.
James Seyffart, an analyst at Bloomberg, repeated this sentiment in January, adding that the fact that the Securities and Exchange Commission’s Division of Enforcement has classified Solana as a security makes it difficult for other SEC departments to assess it within the framework of a commodities exchange-traded fund (ETF).
Despite the fact that experts have varied viewpoints, the timetable for a prospective Solana exchange-traded fund (ETF) remains undetermined. The President of the ETF Store, Nate Geraci, stated in an interview with the Block in November that permission might be granted before the end of the next year.
He also mentioned that the SEC’s current involvement with issuers is an encouraging development. Seyffart, on the other hand, predicted that the process could continue until 2026, pointing out that the SEC generally takes between 240 and 260 days to consider submissions of this nature.
Surge in crypto ETF filings as issuers test SEC’s stance
The SEC has received a slew of cryptocurrency exchange-traded funds (ETFs) in recent weeks, which has led to this new development. Canary Capital, 21Shares, Bitwise, and VanEck are among the major issuers that are competing for the opportunity to offer spot Solana exchange-traded funds (ETFs).
On January 28, the Cboe BZX Exchange resubmitted 19b-4 documents on behalf of these issuers. The Securities and Exchange Commission has acknowledged a number of additional crypto ETF-related applications in addition to Solana.
Both Grayscale’s application for a Litecoin (LTC) exchange-traded fund (ETF) and BlackRock’s proposal to permit in-kind launches and redemptions for its iShares Bitcoin ETF are examples of these types of proposals.
With regard to the listing of a spot Ripple (XRP) exchange-traded fund (ETF), Cboe BZX has submitted documents for Canary Capital, WisdomTree, 21Shares, and Bitwise.
Last but not least, Bitwise has proposed a spot exchange-traded fund (ETF) for Dogecoin (DOGE), adding to the expanding list of cryptocurrency investment products that are on the verge of receiving regulatory clearance.
