The United States Securities and Exchange Commission (SEC) has recently announced an extension of the review period for Grayscale's proposed spot Exchange Traded Funds (ETFs) for Solana (SOL) and Litecoin (LTC). The SEC stated that they need additional time to determine whether these ETF products fully meet investor protection and market transparency standards under the Securities Exchange Act of 1934.
This extension directly impacts Grayscale's plans to launch cryptocurrency ETF products on the NYSE Arca. According to current SEC regulations, the ETF review process can span multiple stages with a maximum total duration of 240 days. Currently, both spot ETF proposals for Solana and Litecoin are in the extended review phase, with the final decision likely to be made by the end of 2025.
Simultaneously, the SEC has also opened a public comment period for other cryptocurrency-related proposals, including the redemption model of the Bitcoin ETF proposed by BlackRock. Additionally, the spot Dogecoin ETF proposal submitted by 21Shares is also experiencing an extended review period.
The SEC's continuous extension of ETF proposal review processes indicates a more cautious approach to financial products related to cryptocurrencies, amid growing digital asset investment demand and a volatile legal environment. This delay also reflects the SEC's efforts to balance financial innovation with investor protection in the rapidly developing digital asset market.
