SEC Moves Forward With Crypto ETFs Including Litecoin And Solana

According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has initiated steps to potentially approve new cryptocurrency exchange-traded funds (ETFs) that track assets such as Litecoin and Solana. This development marks a shift towards a more crypto-friendly stance under the current administration. Additionally, the SEC is exploring new methods for redeeming funds from existing crypto ETFs, while companies are advancing efforts to launch XRP ETFs. On Thursday, the SEC acknowledged a filing by Grayscale for a Solana (SOL) ETF, setting a deadline until October for the Commission to approve or deny the application. This acknowledgment is significant as it represents the first time the SEC has considered an ETF filing for a cryptocurrency previously classified as a "security." Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, noted this as a "notable" development, attributing it to a change in leadership at the SEC. He described it as a "baby step" into new territory. In addition to the Solana ETF, the SEC also recognized several other crypto ETF-related applications on Thursday. These include Grayscale's filing for a Litecoin (LTC) ETF and BlackRock's proposal to enable in-kind creations and redemptions on its iShares Bitcoin ETF. Furthermore, during the U.S. evening hours, Cboe submitted filings to list and trade shares of four separate ETFs aimed at tracking the price of XRP. These filings were made for prospective ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree, all of which had previously submitted S-1 forms, the initial step in launching an ETF. While these actions do not guarantee SEC approval for all proposed products, they indicate a growing confidence among companies to expand beyond Bitcoin and Ether ETFs under the current SEC administration. This shift suggests a more open regulatory environment for a broader range of cryptocurrency ETFs.