The US Securities and Exchange Commission (SEC) has again postponed the timelines for reviewing several crypto ETF applications, including assets like Dogecoin, Litecoin, and Solana. Let's explore the reasons behind these delays and what they mean for the future of crypto ETFs.
SEC's Postponement on Altcoin ETFs
On March 11, 2025, the SEC announced delays for reviewing applications for crypto ETFs from companies like Grayscale, 21Shares, Canary Capital, and Bitwise, which include well-known altcoins like Dogecoin, Litecoin, and XRP. The decision to postpone was expected, as this is part of the standard regulatory process for such applications. One notable delayed application was Grayscale's proposal for a spot XRP ETF, marking the first acknowledgment of an XRP ETF application. The SEC also delayed decisions for Solana ETF applications from VanEck, 21Shares, and Canary Capital.
What's Causing the Delays?
Regulatory delays are common in the crypto world, especially concerning ETFs. The SEC has been cautious about approving crypto ETFs, fearing market manipulation and the lack of clear regulations. The growing interest in crypto ETFs is evident, but the SEC is hesitant due to concerns over market volatility and fraud. Bloomberg ETF analyst James Seyffart noted that these delays were anticipated and align with typical procedures for reviewing such applications. However, the SEC is moving closer to making decisions on these applications.
XRP ETFs: A Growing Interest in the Space
Grayscale's XRP ETF application has generated significant interest in the crypto community. Alongside Grayscale, firms like Bitwise and Canary Capital have filed similar applications. The chances for altcoin ETF approval have increased significantly, with Litecoin leading at 90%, Dogecoin at 75%, and Solana and XRP between 65-70%. This is due in part to the prior approval of Bitcoin ETFs, paving the way for other crypto ETFs.
Crypto ETFs are seen as a crucial step toward increasing transparency and regulation in the crypto market. These products offer investors a way to invest in digital assets without direct purchase, making them attractive to institutional investors. The SEC's thorough review process aims to ensure standards of transparency, security, and market integrity.
