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.
Cboe BZX Proposes Staking for 21Shares Core Ethereum ETF, a First in the US Market
Cboe BZX submitted a proposal to the SEC to amend rules for the 21Shares Core Ethereum (ETH) ETF, aiming to introduce staking capabilities, a first for US Ethereum ETFs. This filing, documented on Form 19b-4, allows the ETF's trust to lock Ethereum to secure the blockchain and earn staking rewards. This development responds to previous regulatory hesitations around staking due to securities classification concerns. If approved, it could enhance the ETF's appeal by offering additional yield, bridging the gap between direct ETH ownership and ETF benefits.
SEC approval is anticipated by late October 2025. The proposed amendment plans for the sponsor to periodically stake portions of ether via reliable, non-affiliated staking providers, thus generating rewards that may classify as income for the trust. This initiative may pave the way for similar offerings in the cryptocurrency ETF landscape, increasing investment attractiveness.
Franklin Templeton Integrates $FOBXX Fund into Solana Blockchain, Eyeing ETF Potential
Franklin Templeton has integrated its Franklin OnChain US Government Money Fund (FOBXX) into the Solana blockchain, aiming to utilize its speed and security. This integration expands the fund's availability beyond Ethereum, Base, and Polygon, while maintaining a stable $1 per share price. FOBXX allocates 99.5% of its assets to U.S. government securities, cash, and repurchase agreements.
The move aligns with increasing institutional interest in blockchain solutions, particularly as Franklin Templeton has recently filed a request in Delaware regarding a potential Solana-based ETF. The asset manager sees Solana as a contender to become the third most relevant cryptocurrency after Bitcoin and Ethereum. Influential figures, like Anthony Scaramucci, champion Solana for its low fees and speed, underscoring its potential in traditional asset tokenization. Overall, the integration of FOBXX enhances blockchain's role in financial products, reflecting growing institutional confidence in Solana's infrastructure and capabilities.
Goldman Sachs Boosts Ether ETF Holdings by 2,000% and Bitcoin ETF Stake Exceeds $1.5B in Q4 2024
Goldman Sachs significantly increased its cryptocurrency exchange-traded fund (ETF) holdings in Q4 2024, boosting its Ether ETF investments by 2,000%, from $22 million to $476 million. The firm also raised its Bitcoin ETF stake to over $1.5 billion, marking a 114% increase, with $1.28 billion in BlackRock's iShares Bitcoin Trust and $288 million in Fidelity’s Wise Origin Bitcoin Fund. This growth coincides with a 41% surge in Bitcoin and a 26.3% increase in Ether during the quarter.
Goldman’s strategy includes a shift towards established funds, offloading positions in ETFs from Bitwise, WisdomTree, and others. Despite its historical skepticism about cryptocurrencies, Goldman is contemplating launching its own crypto trading platform and recognizes the evolving regulatory landscape. Notably, CEO David Solomon described Bitcoin as a speculative asset but maintains that it does not threaten the supremacy of the US dollar.
Canadian and UK Banks Invest Over $280 Million in Bitcoin ETFs
Major banks in Canada and the UK have collectively invested over $280 million in spot Bitcoin exchange-traded funds (ETFs), reflecting a growing interest in cryptocurrency. The Bank of Montreal (BMO) leads with a substantial $150 million investment, primarily in BlackRock’s IBIT, which comprises $139 million of its total holdings. The remaining $11 million is divided among ARK 21Shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC).
Concurrently, Barclays Bank from the UK has announced its entry into the crypto ETF market with a $131 million investment in BlackRock’s IBIT. Despite these significant investments, the combined holdings of BMO and Barclays are significantly lower than Goldman Sachs’ impressive $1.56 billion allocation to Bitcoin investment products, which include a diverse range of ETFs. This trend indicates increased institutional interest in cryptocurrency assets while emphasizing Goldman Sachs’ dominant position in the sector.
Abu Dhabi's Wealth Fund Invests $437 Million in BlackRock's Bitcoin ETF
Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, made headlines by purchasing $436.9 million worth of BlackRock's spot Bitcoin ETF (ticker symbol IBIT) during the fourth quarter of 2024. This significant investment follows BlackRock's acquisition of a commercial license to operate in Abu Dhabi in November 2024, marking a notable move in the crypto landscape. BlackRock's ETF, which manages nearly $56 billion in assets, is recognized as the largest spot Bitcoin ETF by assets under management.
This transaction underscores Abu Dhabi’s growing engagement in digital assets, positioning it as a key player in the cryptocurrency market. Notably, this is not the government's first venture into digital assets; in 2023, it also invested in Bitcoin mining projects. This investment signifies one of the most substantial commitments to cryptocurrency on behalf of Abu Dhabi and reflects a strategic interest in diversifying its investment portfolio.
SEC Accepts Grayscale's XRP and Dogecoin ETF Applications for Review
The US Securities and Exchange Commission (SEC) has accepted Grayscale's applications to launch spot exchange-traded funds (ETFs) for XRP and Dogecoin, recognizing filings made on Form 19b-4 for the Grayscale XRP Trust and Grayscale Dogecoin Trust. This recognition starts a mandatory review process lasting 240 days, which will officially begin once the filings are registered in the SEC's federal register, anticipated within days. Consequently, the SEC could make a decision by mid-October 2025 if filings proceed promptly.
Additionally, the SEC has recently admitted ETF filings for Litecoin and Solana, indicating a growing acceptance of various crypto asset ETFs. Grayscale's movement represents a significant development in the cryptocurrency regulatory landscape, as the approval of these ETFs could pave the way for increased institutional investment and broader market participation in cryptocurrencies like XRP and Dogecoin.
This article has been refined and enhanced by ChatGPT.
![Robot sprints across breaking ZK token bridge after exploit [crypto]](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_sprints_across_breaking_ZK_token_bridge_after_exploit_crypto_11zon_bb28690ab4.webp&w=256&q=75)
![Robot powers CeFi lending tower [CeFi lending]](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_powers_Ce_Fi_lending_tower_Ce_Fi_lending_11zon_dd269c7e0f.webp&w=256&q=75)
![Robot races across borderless blockchain highway [Kraken]](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_races_across_borderless_blockchain_highway_Kraken_11zon_9aa870b840.webp&w=256&q=75)
![Robot falling as [OM] token bridge shatters mid-collapse](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_falling_as_OM_token_bridge_shatters_mid_collapse_11zon_2bbd0b6086.webp&w=256&q=75)
