SEC Delays Spot Crypto ETF Decisions Though Approval Odds Remain Strong – Coincu

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on multiple spot crypto ETFs, including those focused on altcoins such as Solana, Litecoin, XRP, and Dogecoin.

Regulatory delays are not uncommon, as the SEC conducts thorough reviews of proposed rule changes. The move affects applications from major firms like Grayscale, Canary Capital, Bitwise, VanEck, and 21Shares.

SEC Delays Decisions on Multiple Spot Crypto ETFs

Among the postponed applications are the VanEck Solana ETF, Grayscale Dogecoin ETF, Canary XRP ETF, and several other filings related to altcoins.

The SEC also delayed decisions on proposals regarding in-kind creation and redemption processes for Bitcoin and Ether ETFs, as well as staking features for Ethereum ETFs from major issuers like BlackRock and Fidelity.

The commission’s decision follows its recognition of Grayscale’s filing last month, triggering an initial 45-day review period. Under regulatory guidelines, the SEC can extend this timeline up to 240 days, with a final deadline set for May 21, 2025. By this date, the agency must either approve, reject, or initiate proceedings for further review of the proposals.

Analysts Remain Optimistic About ETF Approvals

Despite the postponements, analysts remain optimistic about eventual approvals. Bloomberg ETF analyst James Seyffart noted that while the SEC’s latest move was expected, approval odds for some altcoin ETFs remain high.

“Yes, the SEC just punted on a bunch of altcoin ETF filings… This doesn’t change our (relatively high) odds of approval,” Seyffart commented, pointing to final decision deadlines extending into October.

A recent forecast from Bloomberg analysts suggests Litecoin has the highest probability of ETF approval this year at 90%, followed by Dogecoin at 75%, Solana at 70%, and XRP at 65%.

Meanwhile, Franklin Templeton has entered the growing competition for spot crypto ETFs, filing an S-1 registration form with the SEC to launch an XRP ETF.

If approved, the ETF will trade on the Cboe BZX Exchange with Coinbase Custody serving as the custodian for its XRP holdings. Franklin Templeton joins other firms such as Grayscale, Bitwise, 21Shares, WisdomTree, and Canary Capital in awaiting regulatory approval for XRP ETFs.