• Eric Balchunas, Bloomberg ETF analyst said that it was a significant development and we have entered into a new region.
• The recent advancements indicate that businesses feel more comfortable with the new SEC administration going beyond Bitcoin and Ether ETF products.
• JPMorgan, a financial services firm, approximated an approved spot Solana ETF could captivate between $3 billion and $6 billion in net assets in the first year. 

On February 6, the Securities and Exchange Commission of the United States accepted the changed application of Grayscale for spot Solana ETF. This is a notable move as attempts before this to file SOL ETFs were not accepted under the chairmanship of Gary Gensler of the US SEC.

A finance lawyer, Scott Johansson took to a social media platform, X where he mentioned that the rejection of the regulator was based on Solana products being inaccurately categorized as commodity trust shares. 

James Seyffart, a Bloomberg analyst also mentioned that the Division of Enforcement of the SEC grouping Solana as a security complicates it for other SEC divisions to consider it under a commodities ETF substructure. 

A significant development

Eric Balchunas, Bloomberg ETF analyst said that it was a significant development and we have entered into a new region, although it’s just a baby step, but seemingly the direct result of chairmanship change. 

JPMorgan, a financial services firm, approximated an approved spot Solana ETF could captivate between $3 billion and $6 billion in net assets in the first year. Polymarket predicted that there is a 39% chance that a spot Solana ETF will be approved by the SEC before July 31. 

The exact timeline for Solana ETF is not certain yet, with experts giving various opinions. In November 2024, ETF Store President Nate Geraci revealed that the acceptance could come by December 2025. 

He also highlighted that the latest engagement of the Securities and Exchange Commission with issuers is guaranteeing advancement. At the same time, Seyffart noted that it could be prolonged till 2026, highlighting that the SEC normally takes around 240 to 260 days to review such filings. 

Other ETF-related applications

Apart from Solana, the Commission has accepted other ETF-related applications. One of them is Grayscale’s filing for a Litecoin ETF and BlackRock’s offer to permit in-kind creations and recovery for its iShares ETF. 

Adding more to this, Cboe BZX filed a form to register a spot Ripple (XRP) ETF for Canary Capital, WisdomTree, and 21Shares. 

The recent advancements indicate that businesses feel more comfortable with the new SEC administration going beyond

Bitcoin and Ether ETF products, even if they do not undoubtedly mean that the SEC will accept all of these products. 

The SEC also started a public comment period on Grayscale’s Litecoin Trust’s offered conversion into an ETF. The agency has accepted NYSE Arca’s filing and is accepting comments to be submitted within 21 days of the proposal’s publication in the Federal Register.