SEC Acknowledges Grayscale’s Revised Solana ETF Application Amid Surge in Crypto ETF Filings

In a significant step for Solana (SOL), the U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale's amended application for a spot Solana exchange-traded fund (ETF), signaling a potential shift in the regulatory landscape for cryptocurrency investment products.
On February 6, the SEC recognized Grayscale’s revised filing, which comes after multiple past rejections of Solana-based ETFs under the leadership of SEC Chair Gary Gensler. These previous rejections were primarily due to Solana products being categorized as commodity trust shares, rather than being evaluated within the proper framework for ETFs.
In a post on X, finance lawyer Scott Johnsson highlighted that earlier SEC refusals stemmed from Solana’s classification as a security by the regulator’s Division of Enforcement. This classification made it challenging for other divisions within the SEC to consider Solana under the commodities ETF framework, a sentiment echoed by Bloomberg analyst James Seyffart in January. According to Seyffart, this misclassification has been one of the key roadblocks for approval.
What’s Next for Solana ETF Approval?
While the formal acknowledgment of Grayscale’s revised application is a positive development, the timeline for Solana’s potential ETF approval remains uncertain. Industry experts have varied opinions on when a decision might come.
In November, Nate Geraci, President of the ETF Store, suggested that approval could happen by the end of 2024, citing recent engagement between the SEC and crypto issuers as a promising sign. On the other hand, James Seyffart pointed out that approval could be delayed until 2026, noting that the SEC typically takes 240 to 260 days to review such applications.
Surge in Crypto ETF Filings
The acknowledgement of Grayscale’s Solana ETF application comes amid a surge in crypto ETF filings, with several major issuers racing to list their crypto-based ETFs. Among these issuers are prominent names like 21Shares, Bitwise, VanEck, and Canary Capital, all vying for approval to launch spot Solana ETFs. The Cboe BZX Exchange has also filed 19b-4 forms for these issuers as of January 28.
Beyond Solana, the SEC is also considering applications for other crypto ETFs. These include Grayscale's filing for a Litecoin (LTC) ETF and BlackRock's proposal to allow in-kind creations and redemptions for its iShares Bitcoin ETF. Cboe BZX has also filed forms for other projects, such as a spot Ripple (XRP) ETF, with additional filings from WisdomTree, 21Shares, and Bitwise. Bitwise has even proposed a spot Dogecoin (DOGE) ETF, adding to the growing list of crypto investment products seeking regulatory approval.
As the SEC continues to review these applications, the outcome will play a critical role in shaping the future of crypto ETFs and their broader acceptance within traditional financial markets. The regulatory decisions made in the coming months could pave the way for a new wave of institutional adoption and investment in digital assets.
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