TronWeekly

Crypto World News

You are here: Home / Archives for SEC

SEC

Grayscale’s XRP ETF Moves Forward as SEC Officially Acknowledges 19b-4 Filing

by

  • SEC аcknowlеdgеs Grayscale’s XRP ETF filing, initiаting а 21-dаy public commеnt pеriod.
  • Bloombеrg аnаlysts аssign а 65% аpprovаl probаbility, citing еvolving rеgulаtory sеntimеnt.
  • XRP surgеd 4.10% to $2.553, tеsting $2.556 rеsistаncе аmid ETF optimism.

Thе U.S. Sеcuritiеs аnd Exchаngе Commission (SEC) hаs officiаlly аcknowlеdgеd Grayscale’s 19b-4 filing on Fеbruаry 13, 2025. This rеcognition mаrks а cruciаl stеp towаrd convеrting thе XRP Trust into аn еxchаngе-trаdеd fund (ETF). Unlikе outright rеjеctions sееn in thе pаst, this аcknowlеdgmеnt signаls а shift in thе rеgulаtor’s stаncе towаrd crypto ETFs.

Grayscale hаs opеrаtеd its XRP Trust for yеаrs, mirroring its Bitcoin аnd Ethеrеum trusts. Convеrting it into аn ETF would еnhаncе liquidity аnd аccеssibility, mаking it morе аppеаling to institutionаl invеstors. As of Fеbruаry 13, 2025, thе fund holds $12.88 million in аssеts undеr mаnаgеmеnt.

With thе аcknowlеdgmеnt, thе SEC hаs initiаtеd а 21-dаy public commеnt pеriod, inviting stаkеholdеrs to voicе thеir opinions. Oncе thе window closеs, thе SEC will dеcidе whеthеr to аpprovе, rеjеct, or еxtеnd procееdings for furthеr dеlibеrаtion.

XRP ETF
Source: James Seyffart

XRP ETF Approval Odds at 65%

FOX Businеss journаlist Eleanor Terrett clаrifiеd thаt аcknowlеdgmеnt doеs not еquаl аpprovаl. This doеs not mеаn аutomаtic аpprovаl, nor doеs it guаrаntее thаt thе SEC will аpprovе thе аpplicаtion in thе futurе. Howеvеr, thе аgеncy’s willingnеss to considеr it instеаd of outright rеjеcting it is sееn аs а positivе shift.

Tеrrеtt аlso pointеd out thаt thе SEC should аpprovе similаr аpplicаtions from othеr issuеrs such аs Bitwisе, 21Shаrеs, Cаnаry Funds, аnd WisdomTrее, which filеd аftеr Grayscale. Thе 240-dаy rеviеw pеriod for Grayscale’s аpplicаtion will bеgin oncе publishеd in thе fеdеrаl rеgistеr.

Bloombеrg аnаlysts Eric Balchunas аnd James Seyffart hаvе аssignеd а 65% probаbility of SEC аpprovаl for XRP ETFs. Thеir еstimаtе is bаsеd on еvolving rеgulаtory sеntimеnt аnd incrеаsеd аccеptаncе of crypto-bаckеd finаnciаl products.

On thе sаmе dаy, thе SEC аlso аcknowlеdgеd а 19b-4 form for Grayscale’s Dogecoin Trust, which wаs lаunchеd in lаtе Jаnuаry. Grayscale prеviously stаtеd thаt DOGE hаs еvolvеd bеyond its mеmе coin stаtus, now sеrving аs а tool for finаnciаl inclusion аnd digitаl pаymеnts. DOGE rеmаins thе еighth-lаrgеst cryptocurrеncy, fuеlеd in pаrt by Elon Musk’s еndorsеmеnt.

XRP’s Price Movement and Market Trends

Following thе SEC аcknowlеdgmеnt, XRP surgеd 4.10% in 24 hours, rеаching $2.57. According to Coinglаss, XRP sаw $7.88 million in liquidаtions during this pеriod, with long liquidаtions аt $4.16 million аnd short liquidаtions аt $3.72 million.

XRP 1D graph coinmarketcap 21
Source: CoinMarketCap

XRP is fаcing rеsistаncе аt $2.72. If it surpаssеs this lеvеl аnd еstаblishеs it аs support, thе pricе could push towаrd $3.15. Howеvеr, а rеjеction аt $2.72 might sеnd it bаck to $2.55 and $2.26 for support.

Thе Rеlаtivе Strеngth Indеx (RSI) stаnds аt 47.74, indicаting nеutrаl momеntum. Thе RSI is rеcovеring from rеcеnt lows, suggеsting а potеntiаl shift in sеntimеnt if it continuеs upwаrd. Mеаnwhilе, thе Moving Avеrаgе Convеrgеncе Divеrgеncе (MACD) hints аt а potеntiаl bullish crossovеr, with thе MACD line nеаring thе signаl linе. If thе crossovеr mаtеriаlizеs, XRP could sее short-tеrm gаins, but sustаinеd buying prеssurе is cruciаl for а brеаkout.

Related Readings | Ondo (ONDO) Shows Resilience Amid Market Volatility, Eyes Potential Upside

SEC and CFTC Explore Strategic Collaboration to Strengthen Crypto Regulation

by

  • SEC and CFTC aim to revive a joint committee for clearer crypto regulation.
  • Brian Quintenz’s CFTC appointment signals a pro-crypto shift in U.S. oversight.
  • Crypto market cap rises to $3.18 trillion amid regulatory discussions and shifts.

The United States Securities and Exchange Commission and the Commodity Futures Trading Commission are reportedly developing joint regulations for cryptocurrency markets. The two agencies are exploring ways to revive the CFTC-SEC Joint Advisory Committee (JAC) from its inactive status since 2014. The body was initially formed in 2010 to resolve shared regulatory issues. The proposed reforms for the committee occur as the regulatory environment evolves since regulators aim to establish better clarity around digital assets.

The revived committee will establish better cooperation between the SEC and CFTC regarding their shared responsibilities for crypto asset regulation. These agencies plan to work jointly to resolve emerging jurisdictional questions affecting digital asset prominence in financial markets. The agencies’ combined efforts would create better mutual understanding between the officials and produce more transparent regulatory guidance for market participants.

image 142 2
SEC and CFTC Explore Strategic Collaboration to Strengthen Crypto Regulation 4

Leadership Changes Signal Shift in Regulatory Focus

The SEC and CFTC demonstrate their combined efforts following recent leadership transitions at both organizations. Mark T. Uyeda assumed the SEC chair role acting after Gary Gensler left his position. Additionally, investors in the crypto sphere expect Paul Atkins to bring a more favorable approach toward digital currency. The community is currently considering him to take over the agency. The pro-crypto stance of candidate Paul Atkins means he could establish beneficial new strategies toward blockchain technology and digital assets during his potential tenure.

Furthermore, Brian Quintenz’s appointment to the CFTC represents a major development that favorably impacts the crypto industry. Before joining a16z, Quintenz served as chief of crypto policy, where he demonstrated continuous support for defined regulations governing digital assets. Under this appointment, the CFTC leadership might create a structured framework that enables innovation and investor safeguards.

Ongoing Legal Moves and Market Reactions

The ongoing crypto regulatory exploration between agencies occurs alongside legal sector proceedings that question enforcement methods. For instance, SEC and Binance submitted a request for sixty days of suspension of legal proceedings as their case progressed, which sparked theories about similar delays affecting major existing lawsuits. The SEC’s enforcement direction might transform due to new leadership as they inspect alternative litigation methods instead of maintaining aggressive investigation activity.

The crypto market capitalization has increased to $3.18 trillion, representing a total market growth of 1%. Bitcoin’s price remains at $96,100, having risen 0.3% last day. According to the Crypto Fear and Greed Index, consumer sentiment in the market has transitioned from fear to neutral.

First Bitcoin-Backed Public Fund? Avalon Labs Takes the Lead

by

  • Avalon Labs is exploring a Bitcoin-backed debt public fund under the SEC’s Regulation A framework.
  • The initiative could create a precedent for retail access to Bitcoin-backed financial products.
  • Success may lower entry barriers for traditional investors and expand Bitcoin’s utility.

Avalon Labs is venturing into uncharted territory by assessing the feasibility of launching a Bitcoin-backed debt public fund. This initiative could be the first of its kind, aiming to align with the U.S. Securities and Exchange Commission (SEC) regulations.

In a strategic move, the company collaborates with top U.S. law firms to navigate the regulatory landscape and prepare the required documentation.

At the core of this exploration lies Regulation A, a securities exemption allowing companies to raise capital through public offerings without full SEC registration. Known as a “mini-IPO,” this framework ensures compliance and transparency, making it a favored route for real estate trusts and private firms.

Avalon Labs’ application of this structure to Bitcoin-backed lending products could significantly broaden retail investor access, marking a pivotal moment for crypto adoption in traditional finance.

Co-founder Venus Li, who previously secured SEC approval for a public debt fund in 2021, expressed confidence in the potential regulatory path. She said:

While successful precedents in the crypto industry are limited, our analysis of previous SEC-approved cases suggests a viable path forward. The SEC’s role is to protect retail investors and ensure fairness, not to hinder technological progress. We are confident they will assess any future applications objectively.

Expanding Bitcoin’s Accessibility

Avalon Labs’ ambitious exploration aligns with its mission to develop regulated investment structures for BTC-backed lending products. The firm seeks to bridge the gap between traditional finance and the crypto industry by leveraging the Regulation A exemption.

This endeavor could position Avalon Labs as a leader in regulated Bitcoin-backed financial offerings, creating opportunities for retail investors previously excluded from crypto markets. The proposed fund’s success could accelerate Bitcoin’s integration into mainstream finance, showcasing its potential as a dynamic, income-generating asset.

Lowering Barriers for Traditional Investors

If Avalon Labs successfully launches this Bitcoin-backed public fund, it would signal a breakthrough for the cryptocurrency industry. Lowering barriers for traditional investors, this initiative could pave the way for widespread adoption of Bitcoin-backed financial products.

The fund represents not just a financial innovation but a step toward legitimizing crypto within regulated markets. Nevertheless, Avalon’s efforts underscore the growing convergence of traditional finance and blockchain technology.

Related | Litecoin (LTC) Set for Massive 64% Surge: ETF Approval Coming?

Goldman Sachs Increases Investment in Bitcoin ETFs with a Bold Q4 2024 Strategy

by

  • Goldman Sachs increased its investment in Bitcoin ETFs by 88% in Q4 2024, holding $1.27 billion in BlackRock’s iShares Bitcoin Trust ETF.
  • The firm also acquired $288 million worth of shares in the Fidelity Wise Origin Bitcoin Fund, a 105% rise from the previous quarter.
  • This strategic move highlights growing institutional confidence in BTC and could influence other financial giants to follow suit.

In an unexpected but strategic development, Goldman Sachs significantly ramped up its exposure to Bitcoin exchange-traded funds (ETFs) during the fourth quarter of 2024. The investment bank behemoth’s recent 13F filing with the U.S. Securities and Exchange Commission (SEC) shows a radical shift in its portfolio strategy, demonstrating heightened confidence in the digital asset space.  

As of December 31, Goldman Sachs held a staggering $1.27 billion—24.07 million shares—of BlackRock’s iShares Bitcoin Trust ETF (IBIT). This solidifies IBIT’s position as the largest spot Bitcoin ETF by assets under management. Goldman’s holding in IBIT increased 88% from the previous quarter, a big endorsement of BTC’s long-term value.

BTC has been on a roller-coaster recently, but Goldman’s aggressive accumulation suggests the firm is anticipating a bull run. With the approval of spot Bitcoin ETFs gaining momentum globally, institutional interest is heating up.

Goldman Sachs didn’t stop at BlackRock. The banking giant also increased its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC), purchasing $288 million worth of shares, or 3.5 million units. That represents a whopping 105% increase from the last quarter.

The Fidelity Wise Origin BTC Fund has led the way in institutional BTC adoption, and Goldman’s larger stake illustrates the fund’s growing role. This strategic diversification indicates Goldman’s confidence not just in one ETF provider but in the broader institutional adoption of BTC.  

Goldman Sachs Doubles Down on Bitcoin ETFs

Goldman’s 13F filing revealed smaller Bitcoin ETF positions that were trimmed or fully liquidated, emphasizing the bank’s selective yet substantial focus on the two largest spot Bitcoin ETFs. The tactical change might be interpreted as a strategic bet on market leaders, leveraging their liquidity and institutional credibility.

13F filings offer a rare window into the investment tactics of leading money managers. As required by the U.S. Securities and Exchange Commission, institutional investment managers who manage at least $100 million in equity assets must file the reports within 45 days of the close of each quarter.

For market watchers, these filings are a treasure trove of insights, revealing where influential investors are placing their bets. Goldman’s latest 13F shows a decisive move towards BTC, validating the narrative of digital assets becoming mainstream in institutional finance.

Goldman Sachs’ increased exposure to Bitcoin ETFs is a bullish sign for the cryptocurrency universe. It reflects growing institutional confidence in BTC as an asset class and could encourage other major financial actors to follow suit.”

The timing, amid regulatory advancement and with investor demand for spot BTC ETFs on the increase, suggests that Goldman is not merely hedging its bets but rather positioning for long-term profits.

Related | Ethereum (ETH) Shorts Hit Record Levels, But Smart Money is Buying—Here’s Why  

Binance Lawsuit Paused: Will SEC Rethink Crypto Crackdown?

by

  • Binance and the SEC have agreed to pause their legal battle for 60 days.
  • The SEC’s newly formed crypto task force may influence the case outcome.
  • The motion was filed on February 10, 2025, in the U.S. District Court.

The legal battle between Binance and the U.S. Securities and Exchange Commission (SEC) has paused for 60 days following a joint motion. Both parties agreed to the pause, citing the potential impact of the SEC’s newly formed crypto task force under Hester Peirce. This development raises questions about whether other regulatory cases involving major crypto firms could follow a similar path.

Binance Lawsuit on Hold for 60 Days

Binance and the SEC have requested the U.S. District Court for District Columbia to halt proceedings temporarily. The motion, filed on February 10, 2025, states that the task force’s work may influence the case’s outcome. Both parties will submit a status report after 60 days to determine if an extension is necessary.

The pause aims to conserve legal resources and avoid prolonged litigation. If the task force’s findings lead to an early resolution, Binance’s pending motion to dismiss the case may become irrelevant. This decision highlights a shift in approach under the SEC’s new leadership, led by Chairman Mark Uyeda.

Legal experts believe the pause could indicate a reconsideration of the SEC’s enforcement strategy. The task force, designed to clarify digital asset regulations, may introduce new frameworks affecting ongoing lawsuits. The outcome of Binance’s case could set a precedent for future regulatory actions against crypto firms.

Binance Previously Sought Dismissal Over Regulatory Uncertainty

Binance and its founder, Changpeng Zhao, previously filed a motion to dismiss the lawsuit in January 2025. The filing argued that the SEC failed to prove its claims under the Howey test, a key standard for securities classification. Binance also claimed that the SEC had not provided clear guidelines for distinguishing investment contracts from commodities like Bitcoin and Ether.

The company emphasized that regulatory ambiguity has confused the crypto industry. Binance asserted that the SEC’s inconsistent enforcement makes compliance challenging for exchanges and token issuers. Legal analysts have pointed out that the SEC’s case faces significant hurdles without a structured framework.

Industry leaders have criticized the SEC’s approach to digital assets. They argue that enforcement without clear regulations harms innovation and creates uncertainty. The ongoing legal battle underscores the need for well-defined crypto policies.

Other Crypto Firms May Benefit from Regulatory Shift

The decision to pause the Binance lawsuit raises speculation about other pending crypto cases. Fox Business journalist Eleanor Terrett suggested that cases involving Ripple, Coinbase, and Kraken might see similar delays or reconsiderations. If the SEC reassesses its legal strategy, other firms could seek case dismissals or settlements.

Last week, the SEC’s crypto task force launched an official website to clarify securities laws for digital assets. The initiative aims to introduce practical policy measures that support innovation while protecting investors. The task force plans to work closely with SEC staff and engage with the public to refine crypto regulations.

This shift could mark a turning point for crypto regulation in the United States. The industry may see fewer enforcement cases if the SEC prioritizes clearer rules over legal action. The next 60 days will determine whether the Binance lawsuit signals a broader change in regulatory approach.

BlackRock’s Ethereum ETF Options Face Delay—Will SEC Approve It?

by

  • The SEC has delayed its decision on BlackRock’s Ethereum ETF options trading until April 9, 2025.
  • The agency extended the review period to assess market stability, investor protection, and potential risks.
  • BlackRock’s spot Ethereum ETF was approved in May and began trading alongside other similar funds.

The U.S. Securities and Exchange Commission postponed its decision on BlackRock’s request to list and trade options on its Ethereum ETF. The agency announced it would decide by April 9, 2025, whether to approve or reject the proposal. The delay allows regulators more time to evaluate the rule change and any potential risks.

SEC Extends Review of BlackRock Ethereum ETF Options

BlackRock’s spot Ethereum ETF received approval in May and launched trading alongside eight similar funds. Later, Nasdaq, acting on behalf of BlackRock, submitted a request to list and trade options on the iShares Ethereum Trust. The SEC has extended its review period, citing the need to examine the proposal thoroughly.

The commission stated that assessing the proposed rule change and any concerns raised requires additional time. The delay ensures a careful review of market stability, investor protection, and the impact on financial markets. Regulators emphasized that they would decide after fully considering all relevant factors.

BlackRock remains one of the leading asset managers pursuing cryptocurrency-related investment products. The firm’s spot Bitcoin ETF received similar regulatory scrutiny before gaining approval. Its Ethereum ETF faces comparable challenges, particularly regarding derivative trading risks.

Concerns Raised Over Ethereum ETF Options Trading

The SEC’s delay follows responses from industry groups regarding Nasdaq’s proposal. Better Markets, a nonprofit organization advocating for a more muscular financial system, urged caution over options trading for crypto ETFs. The group emphasized Ethereum’s high volatility and potential risks to retail investors.

Benjamin Schiffrin, Better Markets’ director of Securities Policy, expressed concerns about options trading leading to investor losses. He warned that sophisticated traders might exploit retail investors through complex derivatives. The organization also noted that Bitcoin and Ethereum ETFs carry similar volatility risks.

Regulators have been scrutinizing crypto-related financial products due to potential market manipulation. The SEC has prioritized protecting retail investors from excessive risks tied to derivatives. Market analysts expect the agency to weigh these factors heavily before deciding.

Fidelity’s Ethereum ETF Options Await SEC Review

The SEC also requested public comments on a similar proposal from Cboe BZX Exchange Inc. on behalf of Fidelity. The proposal seeks approval to list and trade options on Fidelity’s spot Ethereum ETF. The agency has invited market participant feedback to understand potential risks and benefits better.

Interested parties have 21 days to submit comments after the notice is published in the Federal Register. The SEC often considers public input before ruling on major financial products. This step ensures transparency and helps regulators gauge market sentiment.

Fidelity’s proposal reflects the growing demand for Ethereum-related investment options. Institutional and retail investors have shown increasing interest in crypto ETFs. The SEC’s final decision will significantly impact the future of Ethereum derivatives in traditional markets.

CBOE Exchange Files for Spot XRP ETFs Amid Growing Crypto ETF Momentum

by

  • To address regulatory concerns, asset managers propose to  source XRP from secondary markets.
  • Ripple’s partial victory over SEC fuels optimism for an XRP ETF.

On Thursday, 6th of February CBOE Exchange sent an application to the SEC to trade spot XRP ETFs, marking significant progress in the crypto ETF landscape. This filing was submitted under the 19B-4 rule, on behalf of four firms WisdomTree, Bitwise, 21Shares, and Canary Capital who  seek approval to launch exchange-traded products tracking XRP, the fourth-largest cryptocurrency by market capitalization. 

XRP Spot ETF Awaits SEC Review

This submission is a part of the final phase in the two-step procedure to introduce a crypto ETF. Once the SEC acknowledges it, the proposal will appear in the Federal Register, and then the process of initiating the agency’s review begins. Most analysts anticipates that, as long as a pro-crypto government and an incoming SEC chair, the green light for XRP spot ETFs would earlier in this year.

“The Exchange contends that granting approval for this proposal (and similar ones) offers the Commission a chance to provide U.S. investors access to XRP through a regulated, transparent exchange-traded instrument designed to mitigate risk for domestic investors,” the filing stated.

Companies Hopes on Ripple’s Legal Win Over SEC

The for XRP exchange-traded funds (ETFs) has significantly risen following Ripple Labs’ partial courtroom success in mid-2023, as it secured a positive outcome in its battle against the U.S. Securities and Exchange Commission (SEC). This judicial decision has been referred to in multiple ETF submissions.

As regulatory review progresses, there are expectations that significant institutional capital could pour into cryptocurrencies. The introduction of XRP-focused ETFs, alongside comparable investment  centered on leading digital assets such as Solana, would provide market participants expanded access to blockchain-based financial instruments.

The SEC Mark Uyeda, backed by Commissioner Hester Peirce, backs up a digital asset task force dedicated to defining the legal classification of cryptocurrencies. Peirce also emphasized the importance of differentiating which tokens qualify as securities also simplifying the compliance procedures for businesses

Unlike earlier cryptocurrency ETFs, Ripple does not have a futures market on the Chicago Mercantile Exchange (CME), a crucial factor the SEC considered when approving Bitcoin and Ethereum funds. To enhance the chances of regulatory acceptance, WisdomTree one of the applicants is adopting protective measures, including acquiring XRP exclusively from secondary markets. This strategy ensures no direct association with Ripple Labs, the firm at the heart of the ongoing legal dispute with the SEC.

Related Reading | SEC Shifts Stance on Solana ETF—Approval Finally in Sight?

Grayscale’s Solana ETF: Will the SEC Finally Give the Green Light?, Report

by

  • The SEC has acknowledged Grayscale’s amended application for a Solana ETF, a shift from previous rejections under Chair Gary Gensler.
  • Legal experts highlight that the SEC’s classification of Solana as a security complicates its evaluation for a commodities ETF approval.
  • The approval timeline for the Solana ETF remains uncertain, with predictions ranging from late 2024 to as far as 2026 due to review delays.

The U.S. Securities and Exchange Commission (SEC) has finally responded to Grayscale’s amended application to list Solana (SOL) Exchange-Traded Fund. This is a significant change compared to the previous Solana ETF rejections that the commission made under Gary Gensler as the SEC chairpersons. Those were mainly influenced by regulatory issues resulting from categorizing Solana’s products as commodity trust shares.

Challenges in Solana ETF Approval

Finance lawyer Scott Johnsson shared his insights about the situation that the refusals made by the SEC have arisen due to the classification of SOL. The regulator has always dealt with Solana in a way that has made it impossible to categorize it under the commodities ETF. As noted by the Bloomberg analyst James Seyffart in January, the SEC’s Division of Enforcement now categorizes SOL as a security. Due to this classification it has been difficult to evaluate SOL under the commodities bucket that is essential in getting an ETF approval.

The flow of most experts has not been definite on the approval of the Solana ETF, which has made it difficult to provide an accurate timeline. Nate Geraci, President of ETF store recommended that approval could be as early as by end of next year given the massive interaction of the SEC with issuers this year. 

Crypto ETF Market Growth

On the same, Seyffart said that approval may take up to the year 2026, stating that the SEC normally takes 240 to 260 days to review such filings. Since there is no definite way in which this will be done, this has led to much debate on the timing in question.

This recognition of Grayscale’s application comes as the market sees higher interest in the known crypto ETFs. Several major applicants such as 21Shares, Bitwise, VanEck, and Canary Capital are all seeking to get their spot Solana ETFs. 

On January 28, the Cboe BZX Exchange filed 19b-4 forms for these issues, which signified a significant development in the campaign for approval. The pressure to approve rises as competition intensifies reflecting the steady trend of investors seeking crypto-related financial services.

However, besides SOL, there are many more applications from those wishing to launch a crypto ETF under consideration by the SEC. Grayscale has applied for a Litecoin, and BlackRock seeks to make alterations through in-kind options for its iShares Bitcoin ETF. These filings indicate the increase in the market of cryptocurrencies investment products.

SEC Shifts Stance on Solana ETF—Approval Finally in Sight?

by

  • The SEC acknowledged NYSE Arca’s filing to list and trade the Grayscale Solana ETF.
  • The agency opened a 21-day public comment period before making a decision on the proposal.
  • The SEC had previously declined similar Solana ETF filings, but this acknowledgment signals a potential shift in its approach.

The U.S. Securities and Exchange Commission (SEC) has taken a step forward on the Grayscale Solana Trust proposal. The agency acknowledged a filing from NYSE Arca, which seeks to list and trade the trust as an exchange-traded product. The SEC has opened a 21-day public comment period before making a final decision on the proposal.

SEC Reviews Grayscale Solana ETF Proposal

The SEC’s decision to acknowledge the filing marks a shift in its approach to Solana-based investment products. Previously, the agency had declined similar filings, but the latest acknowledgment signals a change in direction. The SEC will now determine whether to approve, reject, or further review the proposal based on the feedback received.

Bloomberg ETF analysts have highlighted the significance of this development. James Seyffart pointed out that the SEC had previously avoided acknowledging Solana-based filings. Eric Balchunas also noted that this is the first time an ETF tracking a cryptocurrency previously labeled as a security has been acknowledged.

Market analysts believe the regulatory shift reflects changes in SEC leadership. Six weeks ago, the SEC reportedly instructed CBOE to withdraw its Solana ETF filing. The latest move suggests a new regulatory stance under the current administration.

SEC Also Considers Grayscale’s Litecoin Trust

Alongside the Solana ETF proposal, the SEC has also requested public comments on Grayscale’s Litecoin Trust. The agency’s review process follows the same 19b-4 procedure required for listing and trading exchange-traded products. Public input will play a key role in the final decision regarding the Litecoin-based ETF.

Market observers view the SEC’s acknowledgment of multiple crypto-based ETFs as an important regulatory development. The approval of a Litecoin ETF could signal greater acceptance of cryptocurrency investment products. Industry experts suggest that if the SEC approves the Solana or Litecoin ETFs, it may open the door for other similar products.

The ongoing discussions indicate the SEC’s increasing focus on crypto asset regulation. The agency aims to clarify which digital assets qualify as securities. This could impact the approval process for future cryptocurrency-based investment products.

SEC Forms Task Force to Regulate Crypto Assets

The SEC recently formed a crypto task force to reassess its approach to digital asset regulation. Acting SEC Chair Mark Uyeda appointed Commissioner Hester Peirce to lead the initiative. The task force will identify which cryptocurrencies should be classified as securities.

Regulatory experts believe this initiative could clarify the evolving crypto market. By establishing clearer guidelines, the SEC aims to streamline the registration process for firms. The task force’s decisions could influence the future approval of crypto exchange-traded products.

With a new administration in office, market participants anticipate regulatory changes. Some analysts predict that a spot Solana ETF could receive approval by the end of the year. The SEC’s latest actions indicate a shift in its regulatory stance on digital assets.

Franklin Templeton Pushes for Crypto ETF—Regulators Hold Key

by

  • Franklin Templeton has applied for SEC approval to launch a new Crypto Index ETF.
  • The ETF will expose Bitcoin and Ether under the ticker symbol EZPZ.
  • The fund will track spot prices and rebalance its holdings every quarter.

Franklin Templeton has applied for regulatory approval to launch the Franklin Crypto Index ETF, expanding its digital asset offerings. The fund will expose Bitcoin and Ether to a single investment vehicle listed on the Cboe BZX Exchange. Following Donald Trump’s election victory, the firm aims to capitalize on the growing demand for cryptocurrency investment products.

The latest filing represents the Second amendment to the firm’s S-1 registration statement for the ETF. Franklin Templeton seeks to include a broader range of digital assets in the future. However, any expansion of assets will require additional regulatory approvals before implementation.

If approved, the ETF will track the spot prices of Bitcoin and Ether, with each weighted according to market capitalization. As of February 5, Bitcoin comprised 86.31% of the index, while Ether accounted for 13.69%. The fund’s underlying index will be rebalanced quarterly in March, June, September, and December.

Franklin Templeton Plans to Expand Crypto ETF

Franklin Templeton has indicated that it may incorporate additional cryptocurrencies into its ETF. However, including new tokens depends on regulatory approvals for the ETF and the Cboe BZX Exchange. The company intends to keep its funds adaptable to evolving regulatory conditions in the cryptocurrency sector.

The firm acknowledged the risks associated with digital assets, particularly concerning blockchain network forks. A temporary or permanent fork could reduce asset values, affecting the ETF’s overall performance. Additionally, competition from emerging blockchain platforms such as Solana, Avalanche, and Cardano could weaken investor demand for Bitcoin and Ether.

Franklin Templeton remains optimistic about the ETF’s market potential despite these risks. The firm expects fund shares to be actively traded under the EZPZ ticker. However, it noted that market liquidity is not guaranteed, which could impact price stability.

Solana and XRP ETFs Await SEC Decision

The SEC has historically resisted cryptocurrency ETFs, citing investor protection concerns. However, regulatory sentiment shifted last year when the agency approved ETFs for Bitcoin and Ether. These approvals opened the door for broader institutional and retail participation in digital assets.

Several asset managers have submitted proposals for ETFs tied to other cryptocurrencies following this shift. Applications for Solana and XRP-based funds are under review, with potential approvals expanding the crypto ETF market. Investors are closely watching the SEC’s decisions, which could shape the future of cryptocurrency-based investment products.

Recently, Bitwise secured initial approval for its ETF tracking both Bitcoin and Ether. The SEC granted accelerated approval for NYSE Arca to list and trade the hybrid fund’s shares. This development highlights the growing acceptance of cryptocurrency ETFs in mainstream financial markets.