The U.S. Securities and Exchange Commission (SEC) invited public input on the potential conversion of the Grayscale Solana Trust into an exchange-traded product (ETP).

The SEC's notice recognized a filing from NYSE Arca, which seeks to list and trade shares of the Grayscale Solana Trust. This follows the submission of a 19b-4 filing by NYSE Arca last month, a crucial step in the process of proposing a spot cryptocurrency ETF.

The SEC has requested public comments on the proposal to be submitted within 21 days from its publication in the Federal Register. After the comment period, the SEC will decide whether to approve the proposal, disapprove it, or initiate proceedings to further evaluate the proposed rule change.

The acknowledgment of the Grayscale Solana 19b-4 filing by the SEC marks a significant development, as the SEC had previously declined to acknowledge similar filings for Solana. Bloomberg ETF analysts highlighted the importance of this move, indicating that it represents a new phase, particularly because Solana had been referred to as a 'security' in the past.

Additionally, the SEC has also called for comments on Grayscale’s Litecoin trust on the same day. The recent developments come in the wake of President Donald Trump's administration, which is considered pro-crypto, and some industry experts anticipate that a spot Solana ETF might receive approval by the end of this year.

In a related move last month, acting SEC Chair Mark Uyeda initiated a crypto task force, spearheaded by Commissioner Hester Peirce. The task force's recent announcement indicated its intention to discern which crypto assets should be considered securities, potentially impacting how firms register and the guidance provided by the SEC regarding exchange-traded products.

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