The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward approving new cryptocurrency exchange-traded funds (ETFs), including those tracking major digital assets such as Solana (SOL) and Litecoin (LTC).
Additionally, separate filings are advancing plans for XRP-based ETFs. Bloomberg ETF analyst Eric Balchunas explains that the new stance represents a crucial historical development in SEC policies.
In a tweet, Balchunas emphasized that this is the first time the SEC has acknowledged an ETF application for a cryptocurrency previously classified as a security. He noted that under former SEC Chair Gary Gensler’s leadership just six weeks ago, the SEC instructed the Chicago Board Options Exchange (Cboe) to withdraw its Solana 19b-4 filing.
The leadership transition at the SEC has created a regulatory shift that Balchunas directly associates with these developments.
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Solana ETF Acknowledgment: A Turning Point
The acceptance of Grayscale’s Solana ETF submission by the SEC stands out according to ETF analyst James Seyffart because the agency had previously declined all such applications. Through his post on X Seyffart demonstrated that the SEC has taken a changed approach regarding crypto ETFs.
Grayscale has applied for a Litecoin ETF, while BlackRock provided documentation regarding its iShares Bitcoin ETF, designed for in-kind creation and redemption mechanisms.
ETF applications are rising rapidly because asset managers believe the SEC will soon approve alternatives to Bitcoin and Ethereum spot ETFs.
XRP ETFs and Institutional Adoption
The Chicago Board Options Exchange (Cboe) has also filed to trade shares of four XRP ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree. These applications had already been submitted through S-1 registration statements, but their progress toward approval indicates growing regulatory momentum for crypto-based ETFs.
What This Means for Crypto Markets
While the SEC’s acknowledgment does not guarantee final approval, Balchunas described this move as a “baby step” that reflects a broader evolution in regulatory attitude toward digital asset ETFs.
The market is closely watching for further developments, as ETF approvals could drive major institutional participation and expand investor access to cryptocurrencies. The SEC’s decisions in the coming months will play a critical role in shaping the future of crypto investment products and market structure.
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