- The SEC has delayed its decision on Grayscale’s Solana and Litecoin ETFs, citing the need for more time to assess market integrity and investor protection.
- Despite the delay, market sentiment remains positive, with strong approval odds and solid price gains for both altcoins.
The U.S. Securities and Exchange Commission (SEC) has once again hit pause on Grayscale’s attempts to launch spot ETFs for Solana (SOL) and Litecoin (LTC), citing the need for more time to review the proposals. The decision adds another chapter to the ongoing saga between crypto innovators and federal regulators.
In filings released earlier this week, the SEC said it requires additional time to evaluate whether the applications meet necessary standards under the Securities Exchange Act of 1934—particularly those related to market manipulation risks and investor protection. Grayscale’s proposed ETFs would offer mainstream investors regulated exposure to these altcoins, potentially driving broader adoption.
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While the delay is not unexpected, it reflects the slow-moving regulatory environment that has dogged crypto ETF proposals for years. Still, market watchers see a glimmer of hope. According to prediction platform Polymarket, odds of a Solana ETF approval by year’s end stand at 82%, with Litecoin’s ETF chances close behind at 80%.
This optimism appears to be driven, in part, by the broader political shift in Washington. Since Donald Trump’s return to the White House, sentiment in the crypto community has turned more hopeful, with many expecting a rollback of the stringent oversight seen under SEC Chair Gary Gensler and the Biden administration.
The delay also comes amid a crowded ETF queue. Bloomberg ETF analyst Eric Balchunas noted that there are now 72 crypto-related ETF proposals pending—underscoring a competitive push to secure regulatory approval in a rapidly maturing market.
Despite regulatory headwinds, the altcoin market has remained resilient. At press time, Solana traded at $182.13 and Litecoin at $104.45, both posting strong gains over the past 24 hours.
While the SEC’s hesitation tempers short-term enthusiasm, the long-term outlook remains constructive. Should Grayscale ultimately receive the green light, it could pave the way for broader ETF adoption across the crypto sector—setting a new precedent in digital asset investing.
