The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s attempt to establish an exchange-traded fund (ETF) for the Solana (SOL) smart contract platform.
According to a recent thread on X by Bloomberg ETF analyst James Seyffart, the SEC’s recognition of the bid is significant as it had previously rejected similar attempts.
“UPDATE: SEC has acknowledged the Grayscale Solana 19b-4. This is noteworthy because the SEC had previously rejected similar filings for SOL,”
ETFs allow traders to gain exposure to assets like precious metals and cryptocurrencies without actually owning them. The SEC had approved ETFs based on Bitcoin (BTC) and Ethereum (ETH) in 2024.
Senior Bloomberg ETF analyst Eric Balchunas noted that the SEC’s acknowledgment is a positive step, especially after the agency, under former Chair Gary Gensler, instructed the Chicago Board Options Exchange (CBOE) to withdraw its Solana ETF application.
“Notable because this is the first time an ETF filing tracking a coin previously deemed a ‘security’ has been acknowledged by the SEC. Just six weeks ago, the SEC told CBOE to withdraw their Solana 19b-4. This signals a change in leadership,”
Following Gensler’s resignation before President Trump’s inauguration, the SEC rejected all SOL-based ETF applications. Balchunas predicted that firms would reapply after the change in leadership.
Seyffart also mentioned that the SEC’s shift on Solana could benefit crypto firms facing lawsuits where SOL is classified as a security by the regulatory body.
The deadline for Grayscale’s application is expected to be around October 11th, according to Seyffart.
At the time of writing, Solana is trading at $193.37, reflecting a 1.3% increase in the last 24 hours.
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