The SEC delayed decisions on Grayscale’s Solana and Litecoin ETFs to review investor protection standards.
BlackRock proposed a new in-kind redemption model for its Bitcoin ETF to improve trading efficiency.
The SEC opened public comment periods for multiple crypto ETF filings including Dogecoin and Bitcoin.
The United States Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s proposed Solana and Litecoin spot ETFs. The delay will give the agency more time to continue its evaluation of cryptocurrency-based exchange-traded funds. The review concentrates on whether the proposals satisfy the standards for investor protection and market integrity.
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The SEC said that it requires additional time to review the filings. Grayscale’s intentions include the listing of the ETFs on the NYSE Arca, one of the prominent U.S. exchanges. The ETFs are aimed at providing investors with access to exposure to Solana and Litecoin through conventional accounts.
Regulatory Scrutiny Intensifies Across Multiple Proposals
The SEC also launched open comment periods on several of its crypto-related proposals. This includes a vital amendment to the iShares Bitcoin Trust of BlackRock. The suggested change would permit in-kind redemptions, which means that ETF shares will be redeemed for Bitcoin directly. The agency is now accepting public input to assess the potential market impact of this shift.
Grayscale’s Litecoin and Solana Trusts are still under review as part of this wider regulatory tendency. The SEC needs to establish if each ETF conforms to the legal and market conditions provided under the Securities Exchange Act of 1934. Both filings now face extended timelines for potential approval.
Polymarket Predicts Strong Approval Odds
Crypto prediction platform Polymarket has weighed in on Grayscale’s chances. It gives the Solana ETF an 82% likelihood of approval by the end of 2025. The Litecoin ETF holds an 80% probability under the same timeframe. These projections highlight investor optimism despite current regulatory delays.
BlackRock Seeks In-Kind Model for Bitcoin ETF
BlackRock’s Bitcoin ETF, launched in January 2024, currently operates on a cash redemption model. In this structure, Bitcoin is converted to cash when investors exit. The proposed in-kind method would allow direct swaps between shares and Bitcoin. This change could improve trading efficiency and reduce costs.
Nasdaq filed an updated rule in January to support this shift. The SEC is now formally reviewing the proposal. The outcome may influence future ETF structures beyond Bitcoin.
Dogecoin ETF and Regulatory Shifts Continue
The SEC also acknowledged the filing of a spot Dogecoin ETF by 21Shares. This marks the beginning of the official period for action which could take up to 240 days. The agency has recently dropped several crypto-based claims, including the Ripple lawsuit.
Chair Paul Atkins has campaigned for more openness and public involvement. The SEC now uses public rounds of comment and roundtables to steer its decision. These changes are signs of a possible change of direction when it comes to the evolution of crypto regulation in the United States.
