What You Need to Know

• The U.S. Securities and Exchange Commission (SEC) has updated several cryptocurrency ETF applications.
• The regulator has acknowledged Grayscale’s applications for Solana and Litecoin ETFs and BlackRock’s proposal for in-kind transactions on its Bitcoin ETF.
• Meanwhile, Cboe has filed multiple documents to list and trade XRP ETFs issued by Bitwise, 21Shares, Canary Capital, and WisdomTree.

The SEC’s acknowledgement on Thursday represents a significant step toward allowing new cryptocurrency exchange-traded funds (ETFs) focused on tracking the pricing of assets such as Litecoin and Solana, along with updated redemption practices for existing ETFs.

Earlier, the SEC recognized Grayscale’s filing for a Solana (SOL) ETF, giving the commission until October to decide on the application. Previously, the SEC had declined to acknowledge similar ETF proposals for SOL, prompting Cboe to withdraw their related submissions.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, noted the acknowledgement as “notable,” as it marks the SEC’s first recognition of an ETF filing for a cryptocurrency once categorized as a “security.” In a recent post on X, he said:

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

Additionally, the SEC also recognized several other applications tied to cryptocurrency ETFs, such as Grayscale’s for a Litecoin (LTC) ETF and BlackRock’s intention to allow in-kind transactions and redemptions for the iShares Bitcoin ETF.

During the U.S. evening hours, Cboe filed to list four different ETFs intended to track the price of XRP. These filings come following earlier submissions by the issuers, which include Bitwise, 21Shares, Canary Capital, and WisdomTree.

Although the SEC’s recent actions do not guarantee approval for these products, they signal a more accommodating atmosphere for ETF expansions beyond just Bitcoin and Ether under the current administration.