U.S.SEC Delays Grayscale’s Solana and Litecoin ETFs, Opens Public Comment for BlackRock and Dogecoin Proposals

On May 13, 2025, the U.S. Securities and Exchange Commission (SEC) issued a series of updates regarding upcoming crypto investment products. 

The agency postponed its decisions on Grayscale’s spot ETF applications for Solana (SOL) and Litecoin (LTC), citing the need for further evaluation under the Securities Exchange Act of 1934.

At the same time, the SEC opened public comment periods for two separate proposals: 

• Amendments to BlackRock’s spot Bitcoin ETF, suggesting a shift from a cash-only redemption model to in-kind settlements
• Launch of a Dogecoin ETF from 21Shares, which would track DOGE’s price based on the CF Benchmarks index

Details of the New Filings Under Review

All proposals were submitted through major U.S. exchanges (Nasdaq and NYSE Arca) under the Form 19b-4 rule-change process, regulated by Section 5711(d) for commodity-based trusts.

BlackRock, the world’s largest asset manager, is seeking to amend the structure of its already approved spot Bitcoin ETF. The firm proposed a shift from a cash-only redemption model, where Bitcoin is sold for dollars to settle with investors, to an in-kind structure, allowing shares to be exchanged directly for BTC. The change aims to boost operational efficiency and lower fees.

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Grayscale, for its part, is looking to launch spot ETFs backed by Solana and Litecoin. Both products are slated for listing on NYSE Arca and are designed for institutional investors seeking direct exposure to SOL and LTC through traditional brokerage platforms.

Meanwhile, 21Shares – actively expanding its crypto ETF lineup – has filed for a Dogecoin ETF. The fund would track the price of DOGE based on the CF Benchmarks index and would be listed on Nasdaq.

What the Delay Signals: Institutional Context

The SEC’s decision to postpone rulings and open public comment periods on key crypto ETF proposals reflects a broader shift in regulatory strategy. 

The Commission stressed the need for additional analysis to determine whether the filings meet investor protection and market transparency standards, particularly regarding altcoin-based ETFs and new asset redemption mechanisms.

These developments reflect the SEC’s broader pivot toward a regulatory “reset” under its new chair, Paul Atkins, who took office in early 2025. Since his appointment, the agency has softened several legal positions, dropped select enforcement actions, and initiated public discourse around the future of crypto oversight.

Related: Who Are You, Mr. Paul Atkins?

The SEC now increasingly relies on public comments and expert roundtables as tools for industry engagement. This shift signals a more open dialogue with market participants and an effort to strike a more balanced approach between innovation and regulatory compliance.

What’s Next: Timeline and Expectations

Each filing is subject to a review period of up to 240 calendar days. This is the maximum timeframe allowed under SEC rules for proposals submitted via Form 19b-4. 

As a result, final decisions on the Dogecoin ETF, BlackRock’s proposed in-kind redemption model for its Bitcoin ETF, and Grayscale’s spot ETFs for Solana and Litecoin are not expected before summer or fall 2025.

The next indicative windows for potential updates fall in June and August. The market is closely watching not just the SEC’s actions but also the flow of public comments, as they could influence the direction of regulatory discussions behind the scenes.

The active involvement of major players like Coinbase, 21Shares, Grayscale, and BlackRock only intensifies interest in the process. These firms have the reach and influence to shape both lobbying efforts and the broader narrative in support of approving new crypto investment products.

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