Solana and Litecoin ETFs vie for Trump-era SEC nod: ‘We are in new territory’

3 days ago 11

The SEC acknowledged filings for Grayscale’s Solana and Litecoin ETFs, starting the reappraisal process.
Analysts accidental Solana’s ineligible hurdles could origin a hold successful approval.
JPMorgan estimates Solana ETFs could spot $3 cardinal to $6 cardinal successful inflows.

The crypto exchange-traded money market, which has been dominated by Bitcoin and Ethereum, whitethorn soon go much crowded.

On Thursday, the US Securities and Exchange Commission acknowledged filings for the Grayscale Litecoin Trust and Solana Trust, marking the archetypal measurement successful its reappraisal process.

This is peculiarly notable due to the fact that “the SEC had refused to bash this successful caller filing attempts for Solana,” said Bloomberg Intelligence expert James Seyffart.

These acknowledgments enactment the SEC connected the clock, with a last determination deadline expected by October 11 astatine the latest, according to Seyffart.

Solana ETFs

Analysts predicted that the floodgates for crypto concern products would unfastened erstwhile Gary Gensler stepped down arsenic SEC seat and the Trump medication took over.

And it seems that displacement is already underway.

“Only six weeks ago, the Gensler-led SEC told Cboe to retreat its Solana ETF application. So we are present successful caller territory,” said Bloomberg Intelligence expert Eric Balchunas.

Despite this, ineligible uncertainty lingers. The SEC has antecedently categorised Solana arsenic a information successful ongoing lawsuits against large exchanges.

“The lawsuits and worldly from the part of enforcement request to beryllium cleared earlier they tin o.k. a Solana ETF,” said Seyffart.

Still, analysts spot beardown request for Solana-based ETFs, with JPMorgan predicting inflows betwixt $3 cardinal and $6 billion.

However, the bank’s analysts expect Solana and different altcoins to way Ethereum and Bitcoin successful adoption.

“They volition lucifer if not autumn beneath Ethereum ETF expectations fixed their altcoin status,” JPMorgan researchers wrote.

Ethereum ETFs person underperformed their Bitcoin counterparts since their support successful the US past year.

Bitcoin has racked up full inflows of astir $41 cardinal portion Ethereum funds person lone managed astir $3.2 billion.

Litecoin ETFs

Alongside its Solana Trust, the SEC has acknowledged Grayscale’s Litecoin Trust filing.

Canary Capital has besides projected a Litecoin ETF, which immoderate foretell volition bushed retired Solana to go the archetypal altcoin ETF approved nether the Trump administration.

Unlike Solana, Litecoin hasn’t been labeled a security, which could marque regulatory support much straightforward.

“Litecoin ETFs present person each the boxes checked,” said Balchunas. “With a caller SEC sheriff successful town, this could beryllium the archetypal altcoin ETF to deed the market.”

However, immoderate analysts caution that Litecoin’s deficiency of a regulated futures marketplace could complicate its way to approval.

Historically, the SEC has prioritised ETFs tied to assets with well-developed CME-listed futures markets.