SEC Recognizes Grayscale’s Solana and Litecoin ETF Filings

The US Securities and Exchange Commission (SEC) has officially recognized the 19b-4 filings submitted by the New York Stock Exchange (NYSE) to list and trade the Grayscale Solana and Litecoin exchange-traded fund (ETF).

On February 6, the regulatory body called for public feedback on both filings. Comments must be submitted within 21 days following their publication in the Federal Register.

First SEC Acknowledgment for Solana ETFs

The SEC’s acknowledgment marks a first for Solana (SOL) ETFs, making it a significant development.

“This is actually newsworthy because the SEC had refused to do this in recent filing attempts for SOL,” Bloomberg ETF analyst James Seyffart wrote on X.

He further suggested that this decision could indicate a positive shift for exchanges or firms facing SEC lawsuits that label Solana as a security. Fox Business journalist Eleanor Terrett echoed this sentiment, calling the move “very noteworthy.”

“The same SEC asked the CBOE  to withdraw issuers’ Solana filings just a few weeks ago when Gensler was still at the helm,” Terrett explained.

Bloomberg’s senior ETF analyst Eric Balchunas also agreed. He emphasized the significance of the SEC’s recognition of a product tied to a digital asset previously labeled a “security.”

“So we are now in new territory, albeit just a baby step, but seemingly the direct result of leadership change,” Balchunas remarked.

The SEC’s move comes after the Chicago Board Options Exchange (Cboe) refiled 19b-4 applications for Solana ETFs on behalf of Bitwise, VanEck, 21Shares, and Canary Capital. 

Meanwhile, Gary Gensler’s departure has triggered a surge in ETF filings. This is because many anticipate a more favorable stance toward crypto-related products.

Seyffart estimated that the final deadline for a decision on the Solana ETF application would likely be around October 11.

Grayscale Litecoin ETF Gets Initial Nod

In addition to the Solana ETF, the SEC has acknowledged the NYSE’s 19b-4 filing to list and trade shares of the Grayscale Litecoin Trust. This marks the second acknowledgment of a Litecoin (LTC) ETF. 

According to Seyffart, spot Litecoin ETF could be the next to gain regulatory approval.

“Sticking to my call/view that Litecoin will be the next digital asset to be approved by the SEC for a spot ETF wrapper,” Seyffart posted.

Meanwhile, on the same day, the SEC acknowledged Nasdaq’s 19b-4 filing to allow in-kind creations and redemptions on the iShares Bitcoin Trust ETF (IBIT). Nate Geraci, president of The ETF Store, noted that while this was a step forward, it was long overdue.

“Ridiculous we’re still doing cash creates & redeems,” Geraci stated.

The SEC’s acknowledgment of the Grayscale Solana ETF and Litecoin Trust filings is a positive step forward. Nonetheless, regulatory approval is still far off. Whether the new SEC under President Trump would accelerate the approval of altcoin ETFs remains to be seen.