Overview of recent developments in multiple crypto spot ETFs: SEC review accelerates, SOL and LTC applications lead the way
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Overview of recent developments in multiple crypto spot ETFs: SEC review accelerates, SOL and LTC applications lead the way
An increasing number of institutions are joining the race to apply for crypto ETFs.
Navigating Web3 tides with focused insightsAuthor: Nancy, PANews
Shortly after Gary Gensler's departure, the U.S. SEC has shown a more favorable stance toward cryptocurrencies under the new administration, with its newly formed crypto working group even indicating plans to clarify approval rules for crypto ETFs. Recently, an increasing number of institutions have joined the race to apply for crypto ETFs, with notable progress made in spot ETF applications for SOL, LTC, and XRP.
According to PANews statistics, SOL and LTC have attracted the most applicants for spot ETFs, each with five issuers involved. In terms of progress, various institutions have submitted 19b-4 filings for SOL, LTC, and XRP. However, only Grayscale’s Solana ETF and Litecoin Trust, along with Canary’s Litecoin ETF application, have so far been accepted by the SEC. Under regulations, after accepting a 19b-4 filing, the SEC typically publishes it in the Federal Register and opens a 21-day public comment period. The SEC may then issue multiple extensions while reviewing the application, ultimately deciding whether to approve or reject it—a process that can last up to 240 days, with key response deadlines at 45, 45, 90, and 60 days respectively.
SOL Spot ETF: Five institutions applying, Grayscale’s application accepted by SEC
Currently, five issuers have filed applications for spot Solana (SOL) ETFs: Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital. Unlike the others, Grayscale is seeking to convert its Solana trust into a spot ETF.
Although these institutions initially submitted their SOL spot ETF filings last year, many were rejected by the U.S. SEC. On January 29, Cboe BZX Exchange resubmitted 19b-4 filings for spot Solana ETFs on behalf of Bitwise, VanEck, and others. Looking ahead, the next SEC decision deadlines are March 30 and April 3.
Notably, the SEC appears to be softening its position—recent reports indicate that it has accepted Grayscale’s 19b-4 filing for its Solana ETF.
James Seyffart, Bloomberg analyst, commented that this could be a positive signal for anyone currently facing litigation from the SEC (or any exchange), especially given the SEC previously claimed outright that Solana is a security...
Bloomberg senior ETF analyst Eric Balchunas also noted this is significant news. It marks the first time the SEC has acknowledged an ETF application tracking a token it previously labeled a “security.” Just six weeks ago, the SEC under Gensler had asked CBOE to withdraw its Solana 19b-4 application. We are now entering new territory—though a small step, it appears directly tied to the leadership change.
XRP Spot ETF: Five institutions apply, all have submitted 19b-4 filings
To date, Grayscale, Bitwise, Canary Capital, 21Shares, and WisdomTree have applied for XRP spot ETFs. Grayscale submitted its 19b-4 filing on January 30 to convert its XRP Trust into a spot cryptocurrency ETF. On February 6, Cboe BZX Exchange filed 19b-4 forms on behalf of Bitwise, 21Shares, and Canary Capital to list and trade XRP spot ETFs. Once confirmed by the SEC, these applications will be published in the Federal Register, initiating the regulatory review process.
LTC Spot ETF: Both Grayscale and Canary applications accepted by SEC
So far, only Grayscale and Canary Capital have filed applications for LTC spot ETFs. Filings show that Canary Capital and Grayscale submitted their LTC ETF 19b-4 applications on January 16 and January 24, respectively. The SEC has accepted both applications, which are now in a 21-day public comment period. However, the SEC may still decide to approve, reject, or “institute proceedings.”
Eric Balchunas recently reiterated his belief that Litecoin will become the next cryptocurrency to receive SEC approval for a spot ETF.
Beyond SOL, XRP, and LTC, several other crypto assets have entered the spot ETF approval race. For example, in January, Rex filed applications for a Trump ETF and a BONK ETF; in February, NYSE Arca submitted a 19b-4 form to the SEC for a spot Dogecoin ETF; and 21Shares filed an S-1 registration with the SEC for a spot Polkadot ETF.
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