SEC Delays Grayscale's Solana, Litecoin ETF Approvals
1min read The Securities and Exchange Commission (SEC) has recently delayed the approval of two altcoin ETF applications from Grayscale, specifically those for Solana and Litecoin. This decision is part of a broader trend of the SEC pushing back several altcoin ETF proposals from various asset managers. The Commission's delay filing stated that the institution of proceedings does not indicate any conclusions regarding the issues involved, but rather seeks and encourages interested persons to provide comments on the proposed rule change.
Several prominent ETF analysts have declined to publicly comment on this delay. However, in the long run, SEC approval is still very likely, even if it takes a few months to be finalized. The Commission has been postponing several ETF applications over the last few weeks, and when it delayed Canary Capital’s Litecoin ETF, this fell in line with analysts’ predictions. Previously, analysts claimed that a Litecoin ETF is more likely than any other altcoin product, but they did not comment on the recent events.
The market is also anticipating a Solana ETF, but progress isn’t coming yet. At this point, the market is starting to price in these delays. Last week, Litecoin rallied after the SEC delayed an ETF filing, defying bearish assumptions. So far, neither of the underlying tokens has seen much of a price move after the Commission’s announcement.
There are plenty of reasons to be bullish about approval in the long term. Less than a week ago, the SEC met with representatives from BlackRock to discuss ETF regulations. These talks included high-level associates from the world’s largest Bitcoin ETF issuer; the Head and Director of both Digital Assets and Regulatory Affairs were present. In other words, the SEC is delaying things, but it’s probably going to approve several of these altcoin ETFs in the end. The Commission is seeking industry feedback on long-term implications, but it hasn’t given an outwardly negative sign yet.
Of course, the industry would love speedy SEC approval for all these ETF filings. However, as the recent rate cuts saga clearly indicates, it doesn’t need things like this to maintain profitability. The crypto market has a lot of solid fundamentals right now, which will benefit these assets, even if the Commission keeps dragging its feet for months.
