Altcoin ETFs Postponed:
What's Next for Crypto Investors?
The US Securities and Exchange Commission (SEC) has postponed its decision on proposed cryptocurrency exchange-traded funds (ETFs) that would provide exposure to XRP and Dogecoin. The new deadline for a decision is June 17, 2025. This delay is part of a broader evaluation process under standard SEC timelines, with around 70 crypto ETF proposals currently under review.
What's Behind the Delay?
The SEC's postponement reflects the complexity and scrutiny involved in evaluating crypto-based investment products. While some analysts believe investor interest may remain concentrated in Bitcoin and Ether ETFs, others see potential for growth in altcoin ETFs. The SEC's review process will likely consider factors such as market demand, regulatory oversight, and investor protection.
Pending ETF Applications
Several ETF applications are pending, including:
- XRP ETF: Franklin Templeton's spot XRP ETF has been delayed until June 17, 2025.
- Dogecoin ETF: Bitwise's Dogecoin ETF and 21Shares Dogecoin ETF are also awaiting approval.
- Solana, Cardano, and Litecoin ETFs: Other pending applications include ETFs tracking the spot price of these cryptocurrencies.
Potential Impact on Crypto Market
The approval of altcoin ETFs could transform how institutions gain exposure to digital assets. However, some analysts argue that inflows to these products would be a small fraction of the demand enjoyed by Bitcoin ETFs. The onboarding of additional cryptocurrencies into the ETF space could deliver one crucial advantage: allowing providers to create multi-asset funds with allocations for a wide range of coins.
What's Next?
The crypto industry will be watching closely for the SEC's decision on these ETF proposals. With a new chairman at the helm, Paul Atkins, the SEC's approach to crypto regulation may shift, potentially paving the way for more crypto-based investment products. Stay tuned for further updates on this developing story.
