A look at the latest developments in multiple crypto spot ETFs: SEC review speeds up, SOL and LTC lead in application progress

In recent times, more and more institutions have joined the queue to apply for crypto ETFs, among which the progress of spot ETF applications for SOL, LTC and XRP has seen notable new developments. However, only Grayscale's Solana ETF and Litecoin Trust, and Canary's Litecoin ETF applications have been accepted for review by the SEC so far.

Author: Nancy, PANews

Shortly after Gary Gensler's departure, the US SEC has shown a more friendly attitude towards cryptocurrencies under the new government leadership, with its new crypto task force even stating that it will clarify the rules for crypto ETF approvals. In recent times, more and more institutions have joined the queue to apply for crypto ETFs, among which the progress of spot ETF applications for SOL, LTC and XRP has seen notable new developments.

According to PANews statistics, the most number of spot ETF applications are for SOL and LTC, with 5 issuers participating in each. In terms of progress, major institutions have already submitted the 19b-4 filings for SOL, LTC and XRP, but only Grayscale's Solana ETF and Litecoin Trust, and Canary's Litecoin ETF applications have been accepted for review by the SEC so far. According to the rules, the SEC typically publishes the 19b-4 filings in the Federal Register after accepting them, and then opens a 21-day public comment period. Afterwards, the SEC will go through multiple extensions and reviews, and ultimately make an approval or rejection decision, a process that can take up to 240 days, with key response date milestones at 45 days, 45 days, 90 days and 60 days.

SOL Spot ETF: 5 Institutions Applying, Grayscale Already Accepted by SEC

Currently, five issuers have submitted applications for a spot Solana (SOL) ETF, including Grayscale, Bitwise, VanEck, 21Shares and Canary Capital. Unlike the other institutions, Grayscale is converting its Solana trust fund into a spot ETF.

Although these institutions submitted their SOL spot ETF application documents last year, many were rejected by the US SEC. On January 29th, the Cboe BZX Exchange on behalf of Bitwise, VanEck and others resubmitted the 19b-4 filings for a spot Solana ETF. Looking at the approval timeline, the SEC's next approval dates are March 30th and April 3rd.

Notably, the SEC seems to have "loosened up" a bit, with the latest news showing that the agency has accepted Grayscale's 19b-4 application for a Solana ETF.

Regarding this, Bloomberg analyst James Seyffart said this could be a positive signal for anyone facing SEC litigation (or any exchange) where the SEC has openly claimed that Solana is a security...

Bloomberg senior ETF analyst Eric Balchunas also stated that this is noteworthy news. This is the first time the SEC has acknowledged an ETF application tracking a token that was previously referred to as a "security". Just six weeks ago, the SEC under Gensler's leadership had asked CBOE to withdraw its Solana 19b-4 application. So we are now entering new territory, and while this is just a small step, it seems to be a direct result of the change in leadership.

XRP Spot ETF: 5 institutions have applied, all have submitted 19b-4 filings

To date, Grayscale, Bitwise, Canary Capital, 21Shares and Wisdomtree have applied for XRP spot ETFs. Among them, Grayscale submitted a 19b-4 filing on January 30 this year to convert the XRP Trust into a spot cryptocurrency ETF, and the Cboe BZX Exchange filed 19b-4 filings on February 6 on behalf of Bitwise, 21Shares and Canary Capital, applying to list and trade XRP spot ETFs. Once confirmed by the SEC, the application will be published in the Federal Register, initiating the regulatory approval process.

LTC Spot ETF: Grayscale and Canary's applications accepted by the SEC

Currently, only Grayscale and Canary Capital have submitted LTC spot ETF applications. According to the filings, Canary Capital and Grayscale submitted their 19b-4 filings for LTC ETFs on January 16 and January 24 this year, respectively. The SEC has also accepted the Litecoin ETF applications from these two institutions, and they are now in a 21-day public comment period, but the SEC may decide to approve, deny or "initiate proceedings".

Eric Balchunas recently stated that he still believes Litecoin will be the next cryptocurrency spot ETF approved by the SEC.

In addition to SOL, XRP and LTC, multiple crypto assets have also joined the spot ETF approval battle. For example, in January, Rex applied for Trump ETF, BONK ETF and other applications; in February, the New York Stock Exchange Arca submitted a 19b-4 form to the SEC for a spot Dogecoin ETF, and 21Shares submitted an S-1 registration application to the SEC for a spot Polkadot ETF.

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