SEC Acknowledges Grayscale's Solana ETF Bid, Signaling Potential Shift

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged a filing by crypto asset management firm Grayscale for an exchange-traded fund (ETF) tracking the smart contract platform Solana (SOL). This development is significant as the SEC had previously rejected similar filings.

In a recent social media post, Bloomberg ETF analyst James Seyffart noted the SEC's acknowledgment of Grayscale's Solana ETF bid, highlighting that the regulatory agency had previously refused to do so. Seyffart emphasized the importance of this move, as it signals a potential shift in the SEC's stance on crypto ETFs.

ETFs allow investors to gain exposure to assets like precious metals and crypto without directly purchasing them. The SEC approved Bitcoin (BTC) and Ethereum (ETH)-based ETFs in 2024, but the path to approval for other crypto assets has been more challenging.

Senior Bloomberg ETF analyst Eric Balchunas weighed in on the development, noting that the SEC's acknowledgment of Grayscale's Solana ETF filing is a small but significant step forward. He pointed out that the SEC under former Chair Gary Gensler had instructed the Chicago Board Options Exchange (CBOE) to withdraw its application for a Solana ETF just six weeks prior.

Balchunas also noted that the SEC's change of tune on Solana could potentially benefit crypto firms facing lawsuits where the regulatory body claims SOL qualifies as a "security." The final deadline for Grayscale's application is expected to be around October 11th.

At the time of writing, Solana (SOL) is trading at $193.37, representing a 1.3% increase over the last 24 hours.