The U.S. Securities and Exchange Commission (SEC) appears to be taking a more receptive stance towards cryptocurrency exchange-traded funds (ETFs). Recent actions by the regulatory body suggest a potential shift in policy, opening the door for ETFs tracking assets like Solana, Litecoin, and even XRP.
On Thursday, the SEC acknowledged several pending applications for crypto ETFs, marking a crucial step in the approval process. This acknowledgment triggers a strict timeline for the SEC to either approve or deny these applications. Among the notable developments:
- Solana and Litecoin ETFs: The SEC acknowledged Grayscale’s applications for Solana (SOL) and Litecoin (LTC) ETFs. This is particularly significant for Solana, as the SEC had previously declined to acknowledge similar filings and even instructed exchanges to withdraw their listing proposals. Bloomberg Intelligence senior ETF analyst Eric Balchunas called the Solana acknowledgment “notable,” highlighting that it’s the first time an ETF filing for a cryptocurrency previously considered a “security” has been acknowledged. He suggested this shift may be a direct result of changes in SEC leadership. The SEC now has until October to make a decision on Grayscale’s Solana application. Grayscale’s Litecoin ETF application was also acknowledged.
- Bitcoin ETF Enhancements: The SEC also acknowledged BlackRock’s proposal to allow for in-kind creations and redemptions for its iShares Bitcoin ETF. This could streamline the ETF creation and redemption process, potentially making it more efficient and attractive to investors.
- XRP ETFs: In a further sign of a potentially more crypto-friendly environment, Cboe filed several 19b-4 documents to list and trade proposed XRP ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree. These filings follow previous S-1 filings by the issuers, representing a significant step towards bringing XRP ETFs to market.
While these acknowledgements don’t guarantee final approval for all these products, they signal a growing confidence among companies to pursue crypto ETF offerings beyond Bitcoin and Ethereum. The SEC’s actions suggest a possible evolution in its approach to regulating crypto investment products, potentially paving the way for broader access to diverse crypto assets through ETFs.
