SEC Seems Ready to Advance XRP, Litecoin, Solana ETF Applications

SEC Seems Ready to Advance XRP, Litecoin, Solana ETF Applications

SEC Acknowledges Multiple Crypto ETF Applications, Signaling a Shift in Regulatory Stance

By Helene Braun | Edited by Nikhilesh De
Updated: Feb. 6, 2025, 10:38 p.m. UTC

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged several new cryptocurrency exchange-traded fund (ETF) applications, a move that initiates a strict timeline for approval or denial. This step comes as financial institutions seek to expand their offerings beyond Bitcoin and Ethereum, reflecting what some analysts see as a shift in regulatory sentiment under the agency’s current leadership.

SEC Reviews Crypto ETF Proposals for Solana, Litecoin, and XRP

Among the key filings acknowledged on Thursday was Grayscale’s application for a Solana (SOL) ETF, a development that marks a departure from the SEC’s previous reluctance to engage with ETFs tied to assets it has previously classified as securities. The agency also accepted Grayscale’s filing for a Litecoin (LTC) ETF, as well as BlackRock’s proposal to enable in-kind creations and redemptions for its iShares Bitcoin ETF.

Additionally, the Chicago Board Options Exchange (Cboe) submitted 19b-4 filings seeking approval to list and trade multiple ETFs designed to track the price of XRP. These filings include proposed ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree—firms that had already submitted S-1 registration statements, marking an early step in the ETF approval process.

Regulatory Shift? Analysts See a New Approach

The SEC’s acknowledgment of these filings is significant, as the regulator had previously declined to even review similar applications, particularly for assets like Solana and XRP, which have been the subject of regulatory scrutiny.

Bloomberg Intelligence senior ETF analyst Eric Balchunas described the move as a "notable baby step", emphasizing that this is the first time the SEC has considered an ETF linked to a cryptocurrency it previously deemed a security.

“We are now in new territory, albeit just a baby step, but seemingly the direct result of leadership change,” Balchunas wrote on X.

What Comes Next?

By acknowledging these applications, the SEC has tied itself to a timeline for a decision, with deadlines extending into October 2025 for some filings. While acknowledgment does not guarantee approval, the developments suggest an evolving regulatory environment where financial firms feel increasingly confident in expanding beyond Bitcoin and Ethereum ETFs.

As the SEC moves forward with its review process, market participants will be watching closely to see whether these crypto ETFs gain regulatory approval, potentially paving the way for broader institutional adoption of digital assets.