The U.S. Securities and Exchange Commission (SEC) has extended its decision-making timeline for various cryptocurrency spot ETFs, including those for XRP, Solana, Dogecoin, Cardano, and Litecoin. extended the timeline It's fairly typical for the SEC to postpone initial judgments on ETF submissions.
Notable asset managers are affected, including Grayscale Investments, VanEck, CoinShares, 21Shares, and Canary Capital, as detailed in a slew of filings on the SEC's website posted on Tuesday.
In addition to altcoin ETF requests, a Nasdaq Stock Market filing has been deferred by the SEC. This filing pertains to in-kind creations and redemptions concerning BlackRock’s iShares Bitcoin Trust (IBIT).
The SEC also postponed decisions regarding in-kind creations and redemptions for Fidelity's Wise Origin Bitcoin ETF, Fidelity Ether, and the 21Shares proposal incorporating staking into its Ether ETF.
Loads of ETFs
Investors might find the delay disappointing, but it isn't altogether surprising. The SEC’s examination of new financial instruments, especially ETFs associated with innovative asset classes like cryptocurrencies, usually involves a detailed multi-step process.
It’s not unusual for the SEC to extend initial decisions to gather more data, address concerns, or invite public feedback. The agency is known for delaying rulings on crypto-focused investment products like spot Bitcoin and Ethereum ETFs.
James Seyffart, a Bloomberg Intelligence analyst, remarks that the latest postponements are part of the 'standard procedure' and it doesn't significantly alter the likelihood of the ETFs being approved. He further notes the final deadlines extend until October.
Similar to the NYC-bound Amtrak experiencing 'mechanical issues in DC' on a Monday morning, delays have also impacted Ethernet staking and in-kind requests; everything faces a postponement.
Paul Atkins, President Trump's nominee for the SEC Chair, awaits Senate confirmation. The final decisions on these ETFs will likely occur post-Atkins’s confirmation, although his confirmation hearing date remains unset.
— Eric Balchunas (@EricBalchunas) March 11, 2025
Eric Balchunas, a fellow Bloomberg ETF guru, mentions that past Bitcoin and Ethereum ETF delays didn't hinder their eventual approvals, and he anticipates delays due to governmental processes.
On Tuesday, Franklin Templeton filed an S-1 with the SEC for the Franklin XRP ETF. This announcement followed the company’s registration of an XRP trust entity in Delaware on February 28 of this year.
Asset managers are primarily focusing on XRP and Solana ETF applications. Nevertheless, leading Bitcoin ETF entities like BlackRock, VanEck, Invesco, and Valkyrie have not ventured into the XRP ETF arena. Beyond VanEck, these companies have also refrained from pursuing Solana ETFs.
BlackRock evaluates ETF prospects based on client interest and clear investment strategies. However, their Head of Digital Assets, Robert Mitchnick, points to minimal demand for non-Bitcoin and non-Ether cryptocurrencies.
“Our current client base is primarily interested in Bitcoin, followed by a degree of interest in Ethereum… Beyond those two, interest is currently sparse,” shared Mitchnick at Nashville's Bitcoin 2024 event.
Analysts from Bloomberg ETF predict it's only a matter of time for cryptocurrency ETFs to obtain SEC approval. Litecoin (LTC) stands out as a favorite, with approval chances hovering around 90%.
High Odds
Attributable to its Bitcoin and Ethereum parallels and a strong footing in the crypto realm, most importantly, the CFTC has previously designated it as a commodity.
The high probability is largely due to Litecoin’s Despite its humble beginnings as a memecoin, it benefits from an estimated 75% approval odds—thanks to its significant market presence and robust community backing.
Dogecoin (DOGE) The growing importance of a clear regulatory status is evident, with XRP and Solana yet to secure this advantage. These cryptocurrencies remain labeled as 'securities' amidst the SEC’s ongoing legal proceedings against Binance and Ripple Labs.
Approval probabilities range from 70% to 85%. Solana’s vibrant ecosystem and mounting institutional interest offer a promising outlook, as reflected by prediction markets' strong confidence in its ETF approval potential.
Solana’s (SOL) Approval chances are somewhat intricate, positioned between 65% and 80%. Despite the legal hurdles, optimism persists regarding potential approval, fueled by increased institutional interest and anticipated resolution between the two institutions.
XRP’s Nicholas Say hails from Ann Arbor, Michigan. He's traveled widely, resided in Uruguay for several years, and now calls the Far East home. His writings are widespread online, focusing on realistic development and the evolution of human technology.
