XRP and SOL ETFs Face SEC Delay, But Investors Remain Hopeful

The U.S. Securities and Exchange Commission has once more pushed back on ETF applications involving top altcoins XRP and Solana (SOL), submitted by investment heavyweight Franklin Templeton. The filings are under extended review, continuing a regulatory pattern familiar to the crypto community.

While delays often cause temporary concerns, they rarely change the long-term trajectory. And for many in the industry, the fact that these proposals remain on the SEC’s radar is reason enough to stay optimistic.

SEC Opens Extended Review for XRP and Solana ETFs

On June 17, the SEC formally announced the start of official proceedings to review the proposed spot XRP and Solana ETFs. This review falls under Section 19(b)(2)(B) of the Securities Exchange Act, a procedure commonly used when a deeper analysis is required. Notably, the SEC’s filing emphasizes that this step should not be seen as a denial or a sign of disapproval.

This is the same approach the SEC took with ETF proposals for Dogecoin, Avalanche, and Hedera. Taken together, the delays show a pattern: the commission seems to be playing it safe, probably waiting for clearer legal or political signals before giving the green light to more spot crypto ETFs.

Investors hoping for a quick ETF approval might find this frustrating, but such delays are common, especially for assets without Bitcoin’s or Ethereum’s institutional history. It provides more opportunity for public input, internal review, and potential changes in the commission’s stance.

Expected Market Pullback Doesn’t Worry Analysts

Right after the announcement, both XRP and SOL took a quick dip of about 4%, which was more about traders reacting on the spot than any real shift in their underlying value. These kinds of brief pullbacks happen a lot when regulatory questions pop up, since market sentiment usually moves faster than the facts.

ETF analyst James Seyffart, who has closely followed these developments, noted that this type of delay is not out of the ordinary. On the contrary, it’s part of a predictable cycle. Earlier this month, Seyffart estimated the chances of eventual approval at 85% for XRP and 90% for SOL—figures that suggest strong confidence in the proposals' legal footing and the credibility of the filing institutions.

So, why are analysts so confident? For starters, both XRP and Solana have faced intense regulatory scrutiny in the U.S. XRP just wrapped up a long legal fight with the SEC that shed some light on its legal status. On the other hand, Solana stays in the spotlight within DeFi and institutional circles because of its speedy, cost-effective blockchain.

It’s also worth noting that the first XRP ETF recently launched in Canada, following approval from the Ontario Securities Commission. While regulatory frameworks in Canada and the U.S. differ, this development highlights growing institutional interest in gaining XRP exposure through traditional investment channels.

What It Means for Broader ETF Momentum?

There’s another perspective that’s easy to overlook: the ripple effect these delays have on the entire ETF market. Since spot Bitcoin ETFs were approved in January, many expected altcoin ETFs to follow quickly. However, the SEC’s cautious stance indicates the process might take longer than anticipated.

Still, the fact that filings like Franklin Templeton’s are moving forward, even at a slow pace, could lay the groundwork for future approvals. Institutions aren’t filing just for show; they’re preparing for what they see as a promising market opportunity.

Although the SEC is taking its time, pressure is mounting for clearer regulations. Bitcoin ETFs’ success has demonstrated investor demand, and the infrastructure to support spot altcoin ETFs is increasingly ready.

What Will Happen Next?

The SEC’s prolonged evaluation of XRP and Solana ETFs contributes to short-term uncertainty but does not weaken the escalating institutional interest in these tokens. This type of regulatory vigilance is a standard phase typically encountered before transformative market shifts, rather than an indication of outright dismissal.

Investors and analysts remain hopeful, seeing the delay as part of a careful, broader process. These ETFs have clear paths ahead, and institutional interest is not only persistent but accelerating.