SEC Delays Crypto ETFs: Truth Social and Grayscale in Limbo

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SEC Delays Decision on Truth Social and Grayscale ETFs, Sparking Frustration Among Crypto Investors

In a move that has drawn mixed reactions from both traditional investors and the crypto community, the United States Securities and Exchange Commission (SEC) has announced delays in ruling on two prominent cryptocurrency-based Exchange-Traded Fund (ETF) proposals: the Truth Social Bitcoin ETF and the Grayscale Solana ETF. This latest development puts a temporary halt on the listing process for these digital asset investment vehicles, marking yet another instance of regulatory hesitation in embracing cryptocurrency on mainstream financial platforms.

Truth Social Bitcoin ETF: Decision Pushed to September

The Truth Social Bitcoin ETF, backed by Trump Media & Technology Group (TMTG), had initially been filed by NYSE Arca on June 3, 2025. It aimed to introduce a new Bitcoin-based ETF under the framework for commodity-based trusts. Originally, the SEC was scheduled to make a ruling by August 4, 2025. However, the agency has now postponed that decision to September 18, 2025.

According to the SEC, the delay was necessary to allow additional time for comprehensive analysis and to gather public commentary. While such postponements are not unusual, they continue to frustrate industry stakeholders hoping for a more streamlined approval process for crypto-related financial instruments.

Although former President Donald Trump’s name is absent from the SEC filings, he remains closely tied to the fund through his trust in Trump Media, which is overseen by his son, Donald Trump Jr. This connection has sparked heightened media attention and political scrutiny over the potential implications of the ETF's success or failure.

Trump Media’s Growing Interest in Digital Assets

This is not Trump Media’s first foray into digital finance. The firm recently launched Truth.Fi, a blockchain-focused financial platform poised to invest upwards of $250 million in various digital assets, including Bitcoin and other cryptocurrencies. Plans are also underway to launch a proprietary digital wallet and native token, which could eventually integrate with the company’s streaming service, Truth+.

The proposed Truth Social Bitcoin ETF is being developed in partnership with Yorkville America Digital, an investment firm that emphasizes an "America-first" philosophy. Custody for the Bitcoin assets will be managed by Foris DAX Trust Company, a registered trust entity affiliated with Crypto.com.

In a related initiative, Foris DAX has just introduced a multi-asset cryptocurrency fund that includes five leading digital assets: Bitcoin, Ethereum, XRP, Solana, and Cronos.

Grayscale Solana ETF Also Faces Delay

Alongside the Truth Social proposal, the SEC is also holding off on approving the Grayscale Solana ETF. Grayscale, already well-known for its range of cryptocurrency trust products, had hoped to tap into growing investor demand for Solana by bringing the asset into mainstream financial portfolios.

However, the commission has not specified a new deadline for the Grayscale Solana fund, nor has it offered clarity on the factors influencing its delay. Analysts suggest that concerns over market volatility, custodial infrastructure, and regulatory compliance may be contributing to the extended review period.

The Broader Implication for Crypto ETFs in the U.S.

While the SEC has previously approved spot Bitcoin ETFs and futures-based crypto products, the agency continues to exhibit caution when evaluating new fund proposals involving emerging digital assets or politically sensitive entities.

These delays do not necessarily indicate rejection. Rather, they underscore the SEC's methodical approach to ensuring that new financial products meet stringent legal and investor protection standards. Still, critics argue that excessive caution could impede innovation and undermine U.S. competitiveness in the global digital finance landscape.

"The longer the SEC drags its feet, the more opportunities shift to jurisdictions with clearer regulatory frameworks," said Marissa Lane, a digital asset policy advisor at the Blockchain Finance Alliance. "Investors want clarity, not confusion."

Investors React with Mixed Sentiment

Among retail and institutional investors, reactions to the delay have been mixed. Some see the postponements as routine procedural steps, while others interpret them as a sign that U.S. regulators remain reluctant to fully embrace crypto integration within traditional financial systems.

"It’s disappointing but not surprising," said Kyle Waters, a senior analyst at CoinMetrics. "The SEC has a long history of kicking the can down the road when it comes to crypto ETFs. Still, the fact that these proposals are even being considered is progress in itself."

Market impact has so far been muted, though some observers speculate that continued regulatory delays could lead to short-term volatility in related crypto assets, particularly Solana and Bitcoin.

Trump Media, Crypto, and Politics

The involvement of Trump Media in the ETF space adds a unique political dimension to the SEC’s deliberations. As the 2026 midterm elections approach, any developments involving high-profile political figures and cryptocurrency are likely to be closely scrutinized.

Some political analysts suggest that a successful launch of a Trump Media-backed crypto fund could energize the former president's base, many of whom view blockchain and cryptocurrency as vehicles for decentralization and financial freedom.

Looking Forward: Will Approval Come in 2025?

With growing momentum behind institutional adoption of digital assets, many in the financial community believe it is only a matter of time before the SEC greenlights more cryptocurrency ETFs. Industry insiders are optimistic that the agency will provide clearer guidelines and faster decision-making processes in the near future.

The delay in approving the Truth Social and Grayscale funds may be a temporary setback, but it also signals a shift in the types of entities entering the crypto investment space. What began as a niche for blockchain startups is now drawing the attention of media conglomerates, political organizations, and mainstream financial institutions.

Conclusion

The SEC’s latest delays in approving the Truth Social Bitcoin ETF and the Grayscale Solana ETF underscore the complex regulatory environment that continues to shape the future of digital asset investing in the United States. While the commission insists these extensions are necessary for thorough review, the crypto industry sees them as frustrating barriers to growth and innovation.

As more traditional players enter the digital asset market, pressure is mounting on U.S. regulators to provide a transparent and supportive regulatory framework. Whether these latest ETF proposals are eventually approved or denied, they are pivotal indicators of where the future of crypto finance may be heading in America.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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