The U.S. Securities and Exchange Commission (SEC) appears to be taking steps toward approving new cryptocurrency exchange-traded funds (ETFs), signaling a potential shift in its regulatory stance.
This is happening even though former President Donald Trump’s nominee to replace Gary Gensler as SEC Chairman has not yet been formally confirmed.
The SEC on Thursday announced that it is seeking public comments on Grayscale’s Solana and Litecoin ETF proposals, according to two new filings. Industry experts are calling it a significant change of direction, given that the regulator has previously not accepted applications for ETFs that track the spot price of Solana, one of the largest cryptocurrencies after Bitcoin and Ethereum. The SEC also began seeking comments on another Litecoin ETF earlier this year.
“The fact that the applications were even accepted into the review process shows that their views have already changed,” said Teddy Fusaro, president of Bitwise, which also filed for the Solana ETF. “Just a few months ago, they weren’t reviewing them at all, and now they’ve officially accepted them into the process.”
Since Trump’s election victory, ETF issuers have been ramping up their applications to take advantage of what they hope will be a more favorable regulatory environment. Trump’s SEC Chairman nominee, Paul Atkins, has yet to be confirmed by Congress, but his expected leadership has fueled optimism among crypto advocates.
Some issuers have offered highly original ETFs, including products that track specific digital assets tied to Trump’s brand. Trump Media Technology Group Corp., in particular, recently filed trademarks for six investment products, including three ETFs aligned with the president’s policy themes.
In addition to soliciting public feedback on Grayscale’s altcoin ETF applications, the SEC is also requesting opinions on whether BlackRock’s iShares Bitcoin Trust ETF should be allowed to create and redeem in-kind.
While these developments signal progress, they do not guarantee approval, and the review process could take months. Additionally, the SEC has not yet clarified whether specific crypto assets in existing ETF filings will be classified as securities. Current Solana ETF filings treat the coin as a commodity.
*This is not investment advice.
