SEC Opens Door to Solana ETF, Seeks Public Comment on Grayscale Proposal
The U.S. Securities and Exchange Commission (SEC) has taken a significant step forward in considering a spot Solana exchange-traded fund (ETF), acknowledging a proposal from Grayscale Investments and opening it up for public comment. This move, which follows a similar action regarding Grayscale's Litecoin trust, signals a potential shift in the SEC's approach to cryptocurrency investment products and has sparked excitement within the Solana community.
Grayscale's Solana ETF: A New Hope for Altcoin Funds?
The SEC's notice, issued on Thursday, acknowledges a filing from NYSE Arca to list and trade shares of the Grayscale Solana Trust. This follows NYSE Arca's submission of a 19b-4 form last month, a critical step in the two-part process for proposing a spot crypto ETF. The public now has 21 days from the notice's publication in the Federal Register to submit comments. After this period, the SEC will either approve, disapprove, or initiate further proceedings to evaluate the proposal.
A Shift in Stance? SEC Acknowledges a Solana Filing
Bloomberg ETF analyst James Seyffart highlighted the significance of this development, noting that the SEC had previously refused to acknowledge similar filings for Solana-based products. Fellow analyst Eric Balchunas echoed this sentiment, calling it "notable" as the "first time an ETF filing tracking a coin that had previously been called a 'security' has been acknowledged by SEC." He pointed out that just six weeks ago, the SEC had instructed Cboe to withdraw their 19b-4 filing for a Solana ETF.
Political Winds and a New Crypto Task Force
This shift in the SEC's approach is potentially linked to recent changes in the U.S. political landscape. With a new, potentially more crypto-friendly administration, some experts are projecting a spot Solana ETF approval by the end of the year.
The SEC's evolving stance on crypto is further evidenced by the recent launch of a crypto task force, led by Republican Commissioner Hester Peirce, which aims to clarify the classification of crypto assets and potentially streamline registration processes for firms.