TLDR
- SEC Disruption Halts Litecoin ETF, While Solana Gains Institutional Support
- Litecoin ETF Stuck, Solana Races Ahead Amid SEC Filing Shakeup
- Crypto ETF Chaos: SEC Delays Litecoin, Solana Surges With New Filings
- Solana ETFs Accelerate as SEC Delays Litecoin Amid Shutdown and Shifts
- Filing Shakeup Freezes Litecoin ETF, Solana Soars With Institutional Backing
The U.S. crypto ETF landscape has entered a state of disruption as the SEC shifts processes and a government shutdown limits operations. Canary Capital’s spot Litecoin ETF remains in limbo, with no decision issued by the SEC on the expected deadline. At the same time, several Solana-based crypto ETF filings are advancing, signaling strong institutional engagement.
Litecoin ETF Application Paused Amid Filing Transition
Canary Capital’s Litecoin crypto ETF application faced a roadblock after the SEC failed to respond by the expected decision date. The delay came shortly after Canary withdrew its 19b-4 filing, a document used for exchange rule changes. The firm switched to the S-1 registration statement, following the SEC’s directive to streamline the process.
This change in filing procedures is part of the SEC’s effort to establish uniform standards for approving crypto ETFs. While the S-1 form now takes precedence, its review is subject to regulatory timelines and agency bandwidth. The SEC has remained silent on whether the delay stems from the procedural shift or is due to limited staff resources resulting from the government shutdown.
The SEC had previously announced that new product approvals would be paused during any shutdown. This includes reviews of crypto ETFs, regardless of the type of filing. With operations now restricted, the timeline for reviewing Canary’s Litecoin product remains unclear.
Solana ETFs Show Strong Institutional Backing
Solana-based crypto ETF proposals are gaining momentum, drawing interest from major financial institutions. Top firms like Fidelity, Franklin Templeton and Bitwise have filed updated S-1 forms for spot Solana ETFs. These proposals include staking options, a feature not yet seen in approved spot crypto ETFs.
The REX-Osprey Solana Staking ETF recently launched on the Cboe BZX Exchange and recorded $12 million in first-day inflows. This momentum reflects growing demand for Solana exposure in regulated products. European markets have also reported steady inflows into Solana-based ETPs, reinforcing its global appeal.
Analysts now view Solana as the leading altcoin candidate after Bitcoin and Ethereum in the U.S. crypto ETF pipeline. Nate Geraci predicts a possible SEC approval by mid-October, which could establish Solana as a preferred vehicle for exposure to altcoins. The inclusion of staking elements may also influence Ethereum ETF upgrades in future filings.
SEC’s Framework Shift Reshapes ETF Landscape
The SEC has shifted its focus toward utilizing Rule 6c-11 for crypto ETF listings, aiming to simplify procedures and reduce approval timelines. This rule enables issuers to list ETFs without needing separate exchange rule changes, provided they comply with S-1 requirements. It effectively sidelines the older 19b-4 process.
Chair Paul Atkins confirmed the transition would remove access barriers and expand choices in the crypto ETF market. Bloomberg analysts suggest that this rule could significantly reduce ETF timelines, which typically extend up to 240 days. As a result, many firms have updated their filings to align with the new requirements.
While the government shutdown complicates matters, the rule change suggests a more predictable pathway for altcoin crypto ETFs. Solana’s rapid progress underscores how prepared issuers may benefit first. Meanwhile, Litecoin’s status remains unresolved as the new framework and shutdown intersect.
