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SEC Delays Truth Social, Grayscale Crypto ETF Decisions

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on crypto ETF proposals from Truth Social and Grayscale, both originally expected to be decided this summer. 

The delay affects Truth Social’s Bitcoin ETF and Grayscale’s Solana ETF, with the SEC now aiming for decisions by September 18 and October 10, respectively. These postponements come as crypto ETFs continue to gain strong interest from big investors.

Truth Social, the media company linked to Donald Trump, filed for a Bitcoin ETF in June through Trump Media & Technology Group. The filing started a 45-day countdown for the SEC to decide. 

However, in a Monday filing, the SEC said it needs more time to evaluate the application and the concerns raised. “The Commission finds it appropriate to designate a longer period… so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the agency stated.

Under new SEC Chair Paul Atkins, the agency is reviewing dozens of crypto-related ETFs, with 72 applications reportedly awaiting approval. The Truth Social ETF delay is part of a wider pause as the agency studies staking systems and how ETFs allow investors to swap assets without using cash, a process called in-kind redemption. Truth Social is also seeking approval for two other crypto funds, including a dual Bitcoin and Ethereum ETF.

Meanwhile, Grayscale’s Solana Trust, which aims to convert into an ETF, has faced previous delays from the SEC in March and May. The regulator has now pushed its decision to October 10, adding another 60 days to the review process. Other firms like VanEck, Canary Capital, and 21Shares have also filed for Solana ETFs, adjusting their applications based on the SEC’s feedback.

Meanwhile, institutional demand for crypto ETFs has skyrocketed since the SEC first approved spot Bitcoin ETFs in January 2024. BlackRock’s IBIT, for example, is nearing $100 billion in assets under management. Bloomberg analyst Eric Balchunas noted in a recent X post that this flood of applications includes funds based on Bitcoin, Solana, Litecoin, Dogecoin, and Cardano.

As of now, the SEC has not approved any Solana or Litecoin ETFs. The next few months could determine how far the agency is willing to go in expanding access to crypto investment products.

Also Read: Robert Kiyosaki Says Bitcoin and Gold ETFs Aren’t Safe

Richard Ogunjobi

Richard Ogunjobi is a well-experienced crypto journalist who has covered topics that cut across several topics and niches. Richard has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, and loving traveling.

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