SEC Opens Door to Crypto ETF Wave: Solana, Litecoin, XRP Get Nod

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards opening the door to a new wave of cryptocurrency exchange-traded funds (ETFs). On February 6, 2025, the regulatory body acknowledged multiple ETF applications for various digital assets, including Solana, Litecoin, and XRP.

The SEC's acknowledgment of Grayscale's filing for a Solana ETF marks a notable shift in the agency's approach to cryptocurrency ETFs. This is the first time the SEC has recognized an ETF application for a cryptocurrency previously categorized as a security. The Commission now has until October 2025 to make a decision on the application.

Previously, the SEC had instructed Cboe to remove its uploaded 19b-4 documents for Solana ETFs, indicating a change in the agency's stance. Industry analysts, such as Eric Balchunas of Bloomberg Intelligence, attribute this shift to new leadership at the SEC.

In addition to the Solana ETF acknowledgment, the SEC also reviewed Grayscale's application for a Litecoin ETF. This development aligns with industry predictions that Litecoin could be next in line for ETF approval after Bitcoin and Ethereum.

BlackRock, the world's largest asset manager, received acknowledgment for its proposal to allow in-kind creations and redemptions on its iShares Bitcoin ETF. This technical change could enhance the fund's operational efficiency.

During evening hours, Cboe filed documents to list and trade shares of four separate XRP ETFs. The exchange submitted 19b-4 documents for prospective ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree. All four issuers had previously filed S-1 forms, representing the initial step in bringing an ETF to market.

The timing of these developments suggests that companies feel more confident exploring beyond Bitcoin and Ether ETF products under the current SEC administration. This marks a shift from the previous regulatory environment, which was more restrictive toward crypto-based investment products.

JPMorgan estimates that an approved Solana ETF could attract between $3 billion and $6 billion in net assets during its first year of trading. Predictions markets, such as Polymarket, show traders estimating a 39% chance of a spot Sol