SEC’s Shocking Move: Is Crypto Finally Getting a Break? 🤯💰

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Hold onto your hats, folks! The U.S. Securities and Exchange Commission (SEC) has finally decided to acknowledge Grayscale’s filing for a Solana-based exchange-traded fund (ETF). Yes, you heard that right! It’s like they just discovered avocado toast—trendy and a little late to the party.

This is the first time the SEC has even bothered to engage with an ETF proposal tracking a cryptocurrency that was once considered a security. I mean, who knew they could be so… flexible? 🤔

‘A Positive Sign’ (Or Just a Sign?)

So, on February 6, the SEC dropped this bombshell, leaving many of us scratching our heads. Just six weeks ago, they were like, “Nope, not today!” when the Chicago Board Options Exchange (CBOE) tried to file similar Solana ETF proposals. Talk about a plot twist! 🎢

ETF expert James Seyffart took to X (formerly Twitter, because rebranding is all the rage) to point out that this is a big deal. The SEC has previously ghosted other companies trying to file SOL-based products. He even suggested it could be a “positive sign” for crypto firms, including those exchanges the SEC has been suing over Solana’s security status. So, basically, it’s like saying, “Hey, we might not hate you as much as we did last week!”

Eric Balchunas, Bloomberg’s senior ETF analyst, chimed in with his two cents, calling it a “notable development.” He added:

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

Translation: “We’re crawling, but at least we’re not face-planting anymore!”

Earlier this year, Seyffart had predicted that proposals for ETFs tracking the world’s fifth-largest cryptocurrency might be stuck in legal limbo until 2026. Thanks to ongoing lawsuits about whether SOL is a security, it’s like waiting for your favorite show to get renewed—will it happen? Who knows! 📺

Grayscale, the biggest digital asset manager in the world, first applied to convert its Grayscale Solana Trust into an ETF at the end of last year. They launched this product a little over three years ago, and as of this month, they have over 7 million shares outstanding. That’s a lot of shares! It’s like they’re trying to collect Pokémon cards, but for finance.

But don’t pop the champagne just yet! Accepting the filing is just the first step in a long, drawn-out process. The SEC now has a 240-day window to either approve or deny the proposal. So, it’s basically like waiting for your crush to text you back—will they or won’t they? 😬

CBOE Files XRP ETF Requests

Meanwhile, the CBOE is busy filing 19b-4 forms for several crypto investment firms, including Bitwise, Canary Funds, WisdomTree, and 21Shares, for XRP ETFs. It’s like a group project where everyone hopes someone else does the heavy lifting. 🙄

While their validation is far from guaranteed, the SEC’s recent engagement with Litecoin ETF proposals suggests there might be a more favorable environment for crypto-based financial products. Or maybe they just really like the color of Litecoin’s logo. Who knows? 🤷‍♀️

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2025-02-07 17:22