Crypto ETF Chaos: Why Solana, Litecoin, and DOGE Face New SEC Hurdles

The U.S. Securities and Exchange Commission (SEC) has extended its review period for several high-profile cryptocurrency exchange-traded fund (ETF) applications, impacting proposals from BlackRock, Grayscale, and 21Shares. These delays, occurring amidst heightened investor interest and public commentary, affect a range of crypto assets.

SEC Delays Grayscale's Solana and Litecoin ETF Applications

The SEC has deferred decisions on Grayscale's proposed spot Solana (SOL) and Litecoin (LTC) ETFs, pushing the review deadlines to August 11th and October 10th, 2025, respectively. This follows the SEC's standard review process, which includes multiple stages of delay before a final ruling. Grayscale submitted these applications earlier this year as part of a broader ETF strategy targeting major cryptocurrencies. The SEC's delay allows for further analysis and consideration of public feedback, aligning with its practice of utilizing the full statutory review period before approval.

SEC Delays Grayscale's Solana and Litecoin ETF Applications

While no immediate decision is expected, the extended timelines suggest a potential conclusion sometime in 2025. Grayscale's filings remain under review, with the SEC yet to signal preliminary approval or disapproval. Investors and stakeholders will closely monitor the progress of these applications as they advance through the extended review phases.

SEC Postpones BlackRock's In-Kind Redemption Request

The SEC also delayed action on BlackRock's request to alter the redemption mechanisms for its approved spot Bitcoin ETF. BlackRock sought permission to offer in-kind redemptions (asset exchanges instead of cash) but the SEC has not yet set a new deadline for this request. This proposal aimed to improve liquidity and efficiency for institutional investors. While the Bitcoin ETF itself is approved, modifications to its operational structure require further SEC review. This delay reflects the agency's cautious approach to structural changes within existing ETF products.

Public comments and internal consultations contributed to the postponement. The SEC continues its engagement with stakeholders while assessing the implications of in-kind redemptions. BlackRock remains actively involved and has not withdrawn its request.

SEC Begins Review for 21Shares Dogecoin ETF

The SEC has officially acknowledged the 19b-4 filing for a 21Shares spot Dogecoin (DOGE) ETF, initiating the statutory review process. This marks the beginning of the SEC's evaluation of this new crypto-linked product, subject to a defined timeframe for decision-making.

SEC Begins Review for 21Shares Dogecoin ETF

Unlike the delayed Grayscale and BlackRock applications, the 21Shares filing is in its initial review stage. The SEC will now gather public comments and conduct its internal analysis. The timeline will adhere to statutory intervals, potentially extending through the remainder of the year. This filing reflects the growing interest in expanding retail access to cryptocurrency investments. The SEC's prompt acknowledgment indicates procedural readiness, although a final decision remains pending. Stakeholders await whether the agency will continue its pattern of delays or proceed toward approval.

FAQs

• Why did the SEC delay BlackRock’s ETF decision? The SEC delayed BlackRock's in-kind redemption request to facilitate further internal review and gather public feedback.
• What is the new deadline for Grayscale’s Solana ETF? Grayscale's Solana ETF deadline is now August 11, 2025.
• Has the SEC given any signal of approval? No, the SEC has not yet indicated approval or disapproval for any of these applications.
• What is the focus of BlackRock’s ETF modification? BlackRock seeks to implement in-kind redemptions to improve its Bitcoin ETF's operational efficiency.
• When will the 21Shares Dogecoin ETF decision be made? The SEC has just acknowledged the filing; the decision will follow the completion of the statutory review process.

Glossary of Key Terms

• BlackRock: A global asset manager operating one of the world's largest investment funds, including crypto ETFs.
• ETF (Exchange-Traded Fund): A market-traded investment product tracking the performance of specific assets or indices.
• SEC (U.S. Securities and Exchange Commission): The federal agency regulating securities markets in the United States.
• 19b-4 Filing: A formal proposal submitted to the SEC to amend exchange rules, frequently used for ETF applications.
• In-Kind Redemption: A process where ETF shares are exchanged for underlying assets rather than cash, often reducing tax and trading costs.

Reference:

SEC.gov
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