The postponement of approval for exchange-traded funds (ETFs) for alternative cryptocurrencies such as Solana (SOL), Ripple (XRP), Litecoin (LTC), and Hedera (HBAR) until late 2025 is due to several regulatory and technical factors.
Reasons for the postponement:
1. *Lack of Organized Futures Markets*: Unlike Bitcoin and Ethereum, these cryptocurrencies lack support from organized futures markets such as the Chicago Mercantile Exchange (CME), which reduces the transparency and trust required for ETF approvals. [1]
2. *Unstable Leadership at the Securities and Exchange Commission (SEC)*: The resignation of Paul Atkins, the nominee for chair of the commission, in January 2025, led to a leadership vacuum, causing the commission to take a more conservative stance on new approvals. [2]
3. *Regulatory Concerns*: These concerns include the potential for market manipulation, a lack of secure custody solutions, and the absence of clear compliance standards, making the commission hesitant to grant approvals. [1]
Future Outlook:
- *New Features*: Such as the possibility of staking within exchange-traded funds, which may increase their appeal to investors.
