XRP News Today: SEC Nears Approval of First Solana ETF in US

The U.S. Securities and Exchange Commission (SEC) is on the verge of approving a groundbreaking Solana ETF, marking a significant milestone in the cryptocurrency investment landscape. The REX-Osprey proposal, which has been under review, is poised to receive the green light, paving the way for the launch of the first Solana staking ETF in the United States. This development comes after the SEC has already approved spot Ethereum ETFs, which have been trading since last year. The approval of a Solana ETF would provide investors with a regulated avenue to gain exposure to the Solana blockchain, which has been gaining traction in the crypto community.

The SEC's review of Grayscale Investments’ bid to convert the Digital Large Cap Fund (GDLC) into an exchange-traded fund is nearing its conclusion. The fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, is set for a decision by July 2. The composition of GDLC, with Bitcoin and Ethereum making up the majority of its holdings, suggests that the SEC may view the inclusion of other cryptocurrencies as a low-risk addition. This incremental approach aligns with the SEC's previous actions, where spot Bitcoin ETFs were approved in January 2024, followed by spot Ether ETFs seven months later.

The regulatory engagement has intensified, as evidenced by Grayscale's amended Form S-3 filing for GDLC on June 26. This move indicates that the SEC is actively involved in the review process, providing updated disclosures on custody, creation-unit size, and index methodology. These changes typically occur after iterative feedback from SEC staff, suggesting a collaborative effort between the regulator and the issuer.

External analysts share a positive outlook on the approval of GDLC. James Seyffart, an ETF analyst, has noted that the SEC could approve GDLC precisely because the non-Bitcoin, non-Ether tranche is relatively small. This would allow the SEC to gather real-time surveillance data on trading, flows, and creation-redemption activity, which could inform future decisions on standalone XRP, SOL, and ADA funds. The approval of GDLC would not only provide investors with regulated exposure to these cryptocurrencies but also set a precedent for future crypto-ETF approvals.

The launch of the Solana staking ETF is expected to follow a unique regulatory structure, unlike traditional ETFs that require lengthy SEC approval under exchange rules. This innovative approach could expedite the approval process and bring the product to market more quickly. The REX-Osprey product, which uses this unique structure, is set to begin trading soon, providing investors with an opportunity to participate in the Solana ecosystem through a regulated investment vehicle.

The approval of a Solana ETF would be a significant development for the cryptocurrency industry, as it would provide investors with a regulated and accessible way to gain exposure to the Solana blockchain. This could attract more institutional investors to the crypto market, further legitimizing the asset class. The SEC's decision on the GDLC conversion and the subsequent approval of individual spot ETFs on XRP, SOL, and ADA will be closely watched by market participants, as it could set the stage for broader crypto-ETF approvals in the future.