USDCrypto ETF Weekly Boom: SEC Reviews Ethereum, Solana, XRP, and Litecoin
SEC Delays Decision on Ethereum ETF Options Amid Growing Crypto Adoption
The U.S. Securities and Exchange Commission (SEC) is taking additional time to evaluate the approval of options trading for Ethereum exchange-traded funds (ETFs), specifically responding to Nasdaq ISE's request regarding BlackRock’s iShares Ethereum Trust (ETHA). The SEC must reach a decision by April 2025. This move follows the successful launch of spot Ether ETFs in July 2024, which have attracted around $9 billion in net assets.
Options markets are seen as crucial for wider cryptocurrency adoption, with Ethereum options potentially mirroring the success of Bitcoin ETF options that began trading in November 2024. On their debut, options for Bitcoin ETFs, specifically BlackRock’s iShares Bitcoin Trust ETF (IBIT), turned over nearly $2 billion. The SEC's hesitance signals ongoing regulatory scrutiny, yet developments indicate a gradual embrace of cryptocurrency financial instruments under a more crypto-friendly regulatory environment, spurred by recent leadership changes.
SEC Opens 21-Day Comment Period on Grayscale Solana ETF Proposal, Signaling Potential Regulatory Shift
The U.S. Securities and Exchange Commission (SEC) has opened a 21-day comment period for the proposed Grayscale Solana ETF listing, reflecting a potential policy shift towards crypto-based ETFs. This follows successful Bitcoin and Ethereum ETFs and is viewed as a significant step in the regulatory landscape for digital assets. Analysts, including Bloomberg's James Seyffart and Eric Balchunas, emphasize that this is the first acknowledgment by the SEC of a Solana ETF filing, previously dismissed due to Solana's classification as a security.
The acknowledgment does not ensure approval, but it signals the SEC's growing openness to reconsider digital assets within its regulatory framework. The current regulatory environment has been influenced by recent leadership changes and the establishment of a crypto task force to clarify regulations. Such developments could facilitate future approvals of spot crypto ETFs, addressing market concerns and encouraging more institutional participation in the cryptocurrency market.
Nasdaq Seeks Approval for CoinShares XRP and Litecoin ETFs Amid High Approval Odds
Nasdaq has filed 19b-4 forms with the SEC to obtain approval for trading two new exchange-traded products from CoinShares: the CoinShares XRP ETF and Litecoin ETF. These ETFs aim to offer investors exposure to XRP and Litecoin, which are well-established cryptocurrencies. CoinShares, a leading European digital asset investment firm, is looking to bolster its presence in the US market amidst favorable regulatory changes. The Litecoin ETF is positioned to be the first spot crypto ETF approved during the Trump era, benefiting from fewer regulatory hurdles as it has not faced legal disputes with the SEC.
Additionally, the CFTC has classified Litecoin as a commodity, further exempting it from SEC regulations. Polling indicates that the likelihood of Litecoin ETF approval this year exceeds 80%, reflecting strong market expectations. Meanwhile, other US asset managers, including WisdomTree and Bitwise, are also pursuing crypto ETF approvals.
XRP ETF Approval Odds Drop to 65%, Analysts Predict Litecoin Leads at 90%
Bloomberg analysts Eric Balchunas and James Seyffart assessed the approval odds for various spot crypto ETFs, revealing that XRP has the lowest chance (65%) for approval, significantly trailing behind Litecoin (90%), Dogecoin (75%), and Solana (70%). The favorable regulatory standing of Litecoin, bolstered by a recent CFTC ruling, distinguishes it as a strong contender.
Despite XRP's loyal fanbase defending its status as a commodity, the analysts stress that the ongoing SEC litigation with Ripple hampers XRP ETF prospects. Recent filings for XRP and Litecoin ETFs have been submitted to NASDAQ, following similar filings from Cboe. To launch a U.S. crypto ETF, key approvals—S-1 and 19b-4—are required, with the SEC having up to 240 days to decide post-acknowledgment. The analysts noted that prior to current events, approval odds were below 5%, indicating a notable shift in the landscape.
Franklin Templeton’s Crypto Index ETF Moves Closer to SEC Approval for Bitcoin and Ether Exposure
Franklin Templeton is advancing its Crypto Index ETF, which seeks SEC approval to provide institutional investors regulated exposure to bitcoin and ether. Following the recent Amendment No. 2 filed on February 6, 2025, the fund aims to track the CF Institutional Digital Asset Index and will only hold bitcoin and ether initially. Coinbase Custody Trust Company will safeguard the digital assets, while Bank of New York Mellon will manage cash and administrative functions.
The ETF's shares will be listed on the Cboe BZX Exchange under the ticker “EZPZ.” Franklin Resources has invested $100,000 in the fund’s seed capital, purchasing 4,000 shares at $25 each, later converted into the specified cryptocurrencies. The SEC has been reviewing the application since September 2024, and approval is necessary before trading can commence. The fund will not engage in staking or yield-generation activities, emphasizing a regulated investment approach.
Grayscale Pushes for Spot Cardano ETF as Osprey Challenges GBTC Ruling
NYSE Arca filed with the SEC on behalf of Grayscale to launch a spot Cardano ETF, marking the first standalone investment product for ADA. Coinbase Custody Trust Company would act as the custodian, with BNY Mellon as the administrator. The move follows Grayscale’s recent efforts to convert its Solana and XRP trusts into spot ETFs.
Meanwhile, Osprey Funds is challenging Grayscale in court, alleging deceptive advertising regarding GBTC’s ETF conversion, which Osprey claims harmed its business. After a judge ruled in Grayscale’s favor in early February, Osprey filed a motion to reconsider, arguing the case is about misleading promotions rather than securities law. The lawsuit, initially filed in January 2023, remains ongoing despite the SEC approving GBTC’s conversion to an ETF. If successful, Osprey’s challenge could set new legal precedents for crypto firms' marketing practices and competition.
This article has been refined and enhanced by ChatGPT.
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