SEC Delays ETFs Approval For XRP, Solana, Litecoin, and Dogecoin

In a significant move that has the crypto world buzzing, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on the approval of several highly anticipated exchange-traded funds (ETFs) for altcoins like XRP, Solana, Litecoin, and Dogecoin. The delay has left investors eager to see how the regulatory body will ultimately respond to these applications.

What’s Behind the SEC’s Delay?

The SEC's decision to extend the approval process for these altcoin ETFs is not entirely unexpected. In a series of filings, the agency stated that it had “designated a longer period” to determine whether these proposed rule changes would allow the ETFs to proceed.

Specifically, the filings from Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF were both pushed back, with decisions now expected by May 14. This is not the first time the SEC has delayed its ruling on altcoin ETFs, and as analysts point out, this is a routine procedure that often accompanies the approval process for such filings.

The hesitation comes from several key concerns. First, there’s the matter of regulatory clarity. While Bitcoin and Ethereum ETFs have gained more traction due to the existence of regulated futures markets, many of the altcoins in question lack such infrastructure. This complicates the SEC’s decision-making process and increases the potential for delays.

Moreover, the timing of these filings coincides with the ongoing transition at the SEC, with Paul Atkins poised to take over the role of chairman. Until his confirmation hearings are held, any decisions made by the commission could be delayed, as incoming leadership often reviews pending applications more thoroughly.

What Experts Say About the Delay?

While some might view this delay as a setback, others, like Bloomberg ETF analyst James Seyffart, believe it is a predictable move. On X, Seyffart assured followers that this type of delay is common in the industry.

He added that with U.S. President Donald Trump’s pick for SEC chair, Paul Atkins, still awaiting confirmation, it’s no surprise that the SEC has pushed back its decision. “We’ve assumed anything that could be delayed would be delayed until Atkins is officially at the SEC,” Seyffart said. He also pointed out that the final deadline for decisions on these ETFs is not until October, offering some comfort to investors who remain hopeful.

Another Bloomberg ETF analyst, Eric Balchunas, also chimed in, stating, “everything is delayed,” including ETFs for Ether (ETH) staking and in-kind redemptions. His comment highlights the broader trend of delays affecting a variety of crypto-related ETFs. For investors, these delays are part of the broader regulatory pattern they’ve been watching closely, and, as both analysts suggest, it’s far from a cause for alarm.

When Could We See a Decision?

Despite the delays, market analysts remain cautiously optimistic about the approval of these altcoin ETFs. Seyffart, for example, estimates a 65% chance that at least some of these ETFs will be approved by the end of 2025. The SEC is expected to use the full 240-day review period for these applications, but the outcome remains dependent on regulatory clarity and leadership changes within the agency.

As for the fate of Solana, Dogecoin, and Litecoin ETFs, it’s clear that while the approval process is slower than many would like, the demand for these products isn’t going anywhere. Many investors are keeping their fingers crossed, hoping that once Paul Atkins is confirmed, the regulatory landscape will become more favorable to altcoin ETFs.

This delay marks just another chapter in the ongoing saga of crypto regulation. As the SEC continues to weigh the risks and rewards of approving altcoin ETFs, investors are left in limbo. Still, the growing acceptance of crypto and the increasing demand for ETF products suggest that approval is likely, just not as quickly as many had hoped.