What Does SEC's Recent Solana Decision Mean? Is ETF Approval Coming Soon?

The U.S. Securities and Exchange Commission (SEC) seems to be taking steps towards approving new crypto exchange-traded funds (ETFs), signaling a potential shift in its regulatory stance.

This situation is happening even though the nominee appointed by former President Donald Trump to replace SEC Chairman Gary Gensler has not yet been officially confirmed.

On Thursday, the SEC announced that it is seeking public comments on Grayscale's Solana and Litecoin ETF proposals, according to two new filings. Industry experts interpret this as a significant shift, considering the regulator's previous rejections of ETF applications tracking the spot price of Solana, which is one of the largest cryptocurrencies after Bitcoin and Ethereum. Earlier this year, the SEC also began seeking feedback on another Litecoin ETF.

Teddy Fusaro, president of Bitwise, who also applied for the Solana ETF, said, "The fact that the applications are being accepted for review shows that their views have already changed." He added, "Just a few months ago, they were not even reviewing these and now they have officially taken them into the process."

Since Trump's election victory, ETF issuers have accelerated their applications to take advantage of the environment they hoped would be more favorable. Although Trump's SEC Chairman nominee Paul Atkins has not yet been confirmed by Congress, his expected leadership has fueled optimism among crypto advocates.

Some issuers have proposed highly original ETFs, including products that track specific digital assets associated with Trump's brand. In particular, Trump Media & Technology Group Corp. recently filed trademark applications for six investment products, including three ETFs compatible with the president's policy themes.

In addition to requesting feedback from the public regarding Grayscale's altcoin ETF applications, the SEC is also seeking input on whether BlackRock's iShares Bitcoin Trust ETF will be allowed to engage in in-kind creation and redemption.

Although these developments may signal progress, they do not guarantee approval, and the review process can take months. Additionally, the SEC has not yet clarified whether specific crypto assets in the current ETF filings will be classified as securities or not. The current Solana ETF applications treat the coin as a commodity.