SEC Acknowledges Grayscale's Solana ETF, Signaling Shift in Crypto Stance

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards expanding the crypto exchange-traded fund (ETF) landscape. On Thursday, the regulator acknowledged several crypto-related ETF applications, signaling a potential shift in its stance towards digital assets.

The SEC acknowledged Grayscale's application for a Solana (SOL) ETF, marking the first time an ETF filing for a cryptocurrency previously deemed a "security" has been recognized by the Commission. This development comes after the SEC had previously refused to acknowledge similar applications for SOL ETFs. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that this acknowledgment is a "baby step" but a notable one, potentially resulting from a change in leadership at the SEC.

In addition to the Solana ETF application, the SEC also recognized Grayscale's filing for a Litecoin (LTC) ETF and BlackRock's proposal to allow for in-kind creations and redemptions on iShares Bitcoin ETF. During U.S. evening hours, Cboe filed to list and trade shares of four separate ETFs looking to track the price of XRP (XRP), submitted by Bitwise, 21Shares, Canary Capital, and WisdomTree.

These actions indicate that companies are feeling more comfortable expanding beyond just Bitcoin and Ether ETF products with the current SEC administration. While Thursday's actions do not guarantee the approval of these products, they demonstrate a growing interest in and acceptance of crypto ETFs by the regulatory body.