tl;dr
The U.S. crypto market hits a milestone with four new ETFs for Solana, Litecoin, and Hedera launching amid regulatory shifts. Rapid approvals via 8-A filings and institutional demand signal growing acceptance of altcoins, following Bitcoin and Ethereum ETF success.
**Four New Crypto ETFs Launch, Expanding U.S. Spot Market Amid Regulatory Shifts**
This week marks a significant milestone in the U.S. cryptocurrency market as four exchange-traded funds (ETFs) tracking Solana (SOL), Litecoin (LTC), and Hedera (HBAR) begin trading. The launches follow months of anticipation and regulatory maneuvering, signaling growing institutional interest in altcoins and a broader acceptance of crypto assets.
The **Canary Litecoin ETF** and **Canary HBAR ETF** became effective immediately and will start trading on the Nasdaq on Tuesday. Meanwhile, the **Bitwise Solana Staking ETF** also launched on Tuesday, while the **Grayscale Solana ETF**—a conversion from a closed-end fund—will debut on Wednesday. These developments, unexpected by many observers, highlight a shift in the regulatory landscape, as the New York Stock Exchange (NYSE) and Nasdaq approved alternative pathways for ETF listings through 8-A filings.
The 8-A filings, which allow fund issuers to bypass the traditional SEC approval process, were instrumental in fast-tracking these products. The ETFs met the SEC’s generic listing standards for commodity-based trusts, a framework adopted in September 2023. However, the U.S. government shutdown—now in its fourth week—had previously cast uncertainty over regulatory timelines. The SEC’s contingency plan, issued in October, warned of delays in non-emergency approvals, complicating the launch process.
The rapid approvals come as the SEC evaluates dozens of crypto-focused funds, including spot ETFs for Cardano, Avalanche, and Dogecoin. Bloomberg ETF Analyst Eric Balchunas had earlier predicted a high likelihood of Solana and other altcoin ETFs receiving SEC clearance, with 100% odds for Solana products. This optimism aligns with the success of Bitcoin and Ethereum ETFs, which have collectively amassed over $150 billion in assets under management (AUM), with BlackRock’s iShares Bitcoin Trust leading the charge.
The new ETFs cater to a surge in investor demand for crypto exposure, fueled by a more favorable regulatory environment and the recent success of Bitcoin and Ethereum ETFs. Solana, the sixth-largest cryptocurrency with a market cap exceeding $111 billion, saw its price rise 0.5% to $199 in the wake of positive U.S.-China trade talks. Litecoin and Hedera, the 29th and 30th largest digital assets, also gained 3.6% and 1.9%, respectively.
Canary CEO Steven McClurg hailed the Litecoin ETF’s launch as a “landmark moment,” emphasizing the asset’s “proven track record of security and reliability” and its enterprise use cases. The ETFs’ debut underscores the maturation of the crypto market, offering retail and institutional investors a regulated avenue to participate in altcoin growth.
As the SEC continues to review additional crypto ETF applications, the launch of these four products signals a pivotal moment for the industry, bridging traditional finance and digital assets in an evolving regulatory landscape.