Grayscale Joins the ETF Race With Solana and Litecoin Filings

YEREVAN (CoinChapter.com) —  Grayscale, a leading crypto asset management firm, has filed applications with the SEC to create ETFs for Litecoin, Solana, and other cryptocurrency-related products. This move comes as the crypto ETF sector experiences rapid growth following Gary Gensler’s resignation.

The firm has also filed for a Bitcoin Adopters ETF and a synthetic Ethereum ETF, demonstrating its broader ambitions in the ETF market. According to filings, the Bitcoin Adopters ETF will focus on companies holding Bitcoin in their corporate treasuries.

Litecoin ETF Filing Gains Attention Amid Limited Competition

The race to launch a Litecoin ETF has seen limited activity compared to other cryptoassets. The first filing came in October 2024 from Canary Capital, a Nashville-based investment firm. Grayscale is now the second company to file for a Litecoin ETF.

The SEC has hinted at potential approval for Litecoin-related products, with Nasdaq already submitting an application to list a Litecoin ETF if regulatory approval is granted. However, despite these developments, Litecoin’s price has not reacted significantly. Earlier rumors of ETF approval caused a brief price spike, but market interest waned after no progress was made.

One potential reason for the subdued market response could be the lack of significant updates or advancements on the Litecoin network. This contrasts with more active blockchains, which often see higher investor interest.

Solana ETF and Other Products Signal Grayscale’s Strategy

Grayscale’s latest filings include plans for a Solana ETF and a synthetic Ethereum ETF. The Ethereum ETF would utilize positions from Grayscale’s Ethereum Trust and Mini Trust products. In addition, the Bitcoin Adopters ETF is designed to track companies holding Bitcoin as part of their corporate strategies.

Bloomberg analyst James Seyffart commented on the filings, stating,

“Grayscale filed for a ‘Bitcoin Adopters ETF.’ Here are the strategy details: it will be an equity ETF that holds the stock of companies that hold Bitcoin as a part of their corporate treasury.”

While these applications highlight Grayscale’s focus on diversifying its offerings, it faces stiff competition from other issuers dominating the ETF market.

Crypto ETF Applications Surge Following SEC Changes

Since Gary Gensler stepped down as SEC Chair, there has been a significant increase in cryptocurrency ETF applications. This includes filings for products like meme coin ETFs, which have added to the already complex regulatory landscape.

Grayscale submitted several applications in a single afternoon, aiming to position itself competitively in this rapidly evolving sector. The SEC’s decisions on these products remain uncertain as it evaluates numerous proposals under heightened scrutiny.

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