SEC Reviews Grayscale’s Solana-ETF Application

The U.S. Securities and Exchange Commission (SEC) has accepted an application from NYSE Arca for a rule change, which would allow the listing of a spot exchange-traded fund based on Solana-ETF from Grayscale Investments.

The agency has requested public comments. The feedback period will last 21 days following the document’s publication in the federal register.

Bloomberg analyst Eric Balchunas highlighted that this is the first instance of an application being accepted for an altcoin that the regulator has classified as a “security.” His colleague James Seyffart noted that the Commission had previously rejected SOL-ETF proposals.

Notable bc this is the first time an ETF filing tracking a coin that had prev been called a “security” has been acknowledged by SEC. Only six weeks ago the Genz-led SEC told CBOE to withdrawal their Solana 19b-4. So we are now in new territory, albeit just a baby step, but… https://t.co/XiRyA8g3R7

— Eric Balchunas (@EricBalchunas) February 6, 2025

“Six weeks ago, the SEC under [Gary] Gensler required the CBOE [to withdraw the application] for Solana 19b-4. Now we are in new territory […] It seems [this] is a direct result of the leadership change,” explained Balchunas.

On February 6, the regulator also requested comments regarding the conversion of Grayscale Litecoin Trust into an ETF.

Earlier, Hester Peirce, who leads the SEC’s dedicated “crypto group,” stated that the agency’s priorities include determining which assets are not securities and establishing a clear procedure for registering new tokens.

Target: $520 by Year-End

VanEck has forecasted Solana’s rise to $520 by the end of 2025. 

Experts cited the anticipated increase in money supply (M2 aggregate) from $21.5 trillion to $22.3 trillion, which will support the growth of cryptocurrency markets and “top tokens” like SOL.

Experts expect Solana’s market share to change from 15% to 22% in the smart contract platform market, which will grow by 43% to $1.1 trillion.

“The forecast is supported by the network’s dominance among developers, strengthened positions in DEX volumes, revenues, and active users,” the review states.

Back in January, the Commission began reviewing Nasdaq’s proposal to launch a Litecoin-based exchange fund from Canary Capital.

The SEC is also focused on five applications for Solana-ETF from VanEck, 21Shares, Canary, Bitwise, and Grayscale. Additionally, in November, Bitwise and 21Shares submitted documents to launch spot XRP products.