The U.S. financial watchdog, the Securities and Exchange Commission (SEC), has once again hit the pause button on new cryptocurrency investment products. This time, it’s for proposed spot Solana exchange-traded funds (ETFs) from Bitwise and 21Shares. The final decisions for these funds are now set for mid-October.
The SEC’s move isn’t exactly a shocker for those watching the crypto market. The agency said it needed more time. It wants to properly review the proposed changes. It also needs to understand how these new products might affect the market. The SEC stated it finds it “appropriate to designate a longer period to issue an order approving or disapproving” each request. It’s part of a familiar dance between regulators and crypto firms.
A Familiar Script for Crypto ETFs
This delay mirrors how the SEC has handled other crypto ETF applications. Companies like Grayscale and Fidelity have also seen similar delays for their Solana-based products. These postponements are quite common in the world of financial regulation. They are now considered a routine part of the approval process.
Over the past year, the SEC has seen a big jump in companies wanting to launch ETFs that track various digital assets. This includes even XRP and Dogecoin. This increase comes as a presidential administration has shown a more open stance toward the crypto world. That has encouraged more firms to try and get regulated products off the ground.
Many companies have tweaked their applications recently. They want to meet the SEC’s rules. Firms hoping for a green light include ProShares, Grayscale, Canary, 21Shares, and Bitwise. Interestingly, BlackRock, the world’s largest asset manager, is not on this list. They recently said they don’t plan to launch a Solana fund. These application changes often address the SEC’s close look at how shares are created and redeemed. They also focus on the transparency and liquidity of the underlying crypto assets.
The SEC’s Changing View on Crypto ETFs
The SEC’s general attitude toward crypto ETFs has shifted a lot in the last year. Back in July, the agency made a big move. It approved orders that allow “in-kind” creations and redemptions for Bitcoin and Ethereum funds. This was a crucial step for these products to actually work in the market.
This change paved the way for spot Bitcoin and Ethereum ETFs to be listed and traded. It also allowed options on some Bitcoin-based exchange-traded products (ETPs). Thanks to these shifts, analysts from Bloomberg are feeling quite optimistic. They believe other crypto-based ETFs have a roughly 90% chance of getting approved. Funds tracking XRP and Solana are seen as having even higher odds.