After the resounding success of spot Bitcoin ETFs, investors continue to hope for a wave of ETFs for altcoins like Dogecoin, XRP, Solana, or Cardano. However, recently, the U.S. Securities and Exchange Commission (SEC) officially announced the delay of the approval decision for the two most anticipated ETFs, Dogecoin and XRP, at least until June.
Is this just a familiar move by the SEC, or is it a sign that altcoin ETFs are still not strong enough to 'make a mark'?
SEC continues to 'delay' – Dogecoin and XRP have yet to have an explosive opportunity
In the official announcement on Tuesday, #SEC stated it would not yet make a final decision on:
Bitwise Dogecoin ETF
Franklin Templeton XRP Fund
The next decision deadline has been postponed to mid-June, indicating that the SEC is still considering carefully, despite increasing pressure from investors.
In addition to these two ETFs, a series of other proposals have also been delayed, including:
Franklin Templeton's Solana ETF
Grayscale's HBAR ETF
Changes related to Ethereum ETF staking proposed by Franklin and Fidelity
The 'in-kind creation and redemption' mechanism for Invesco Galaxy's Bitcoin and Ethereum ETFs
Why are investors hopeful about altcoin ETFs?
Interest in #ETFaltcoin surged after the success of the Bitcoin ETF early last year. The approval of spot Bitcoin ETF products has helped institutional investors easily access the crypto market without directly holding BTC.
With that mindset, asset management organizations like:
Bitwise
Franklin Templeton
Grayscale
21Shares
CoinShares
Canary Capital
...quickly filed applications for a series of new ETFs based on assets like Solana, Litecoin, Cardano, XRP, Dogecoin, etc.
One factor boosting hope is the crypto-friendly administration under President Donald Trump, who has publicly supported digital assets in the 2024 election campaign. This makes funds believe that the regulatory environment will be looser than before.
Dogecoin and XRP – 'Warhorses' of traders but not guaranteed to win in ETFs?
The appeal of Dogecoin (DOGE) and XRP in the crypto market is undeniable:
DOGE is currently the 8th largest coin by market capitalization
XRP ranks 4th in the market, just after BTC, ETH, and USDT
Both are frequently among the top 10 coins with the highest trading volume every 24 hours
However, strength in trading does not equate to the success of an ETF. The lesson from Ethereum is a clear example: Although ETH is the second largest coin in the world, the Ethereum-based ETFs approved last year did not create a strong effect like the Bitcoin ETF.
This raises the question among analysts: Do regular users really want to own altcoin ETFs, or are they only interested in directly trading on crypto exchanges?
Contact Binance users
For Binance users, this development could provide an opportunity to position potential coins early before they enter the traditional financial market through ETFs.
If the Dogecoin or XRP ETFs are approved in June, it is highly likely that the price will surge before or immediately after the official news.
However, the SEC's delay also shows that the approval process still faces many legal barriers, especially with altcoins that have been involved in legal disputes like XRP.
Users should closely monitor the SEC's progress to assess the appropriate investment timing, while also preparing for the scenario where the ETF is denied – which has happened with many previous altcoin ETF applications.
Conclusion: Altcoin ETF – Promise or Risk?
The SEC's continued delays are not surprising, as the agency is known for its 'playing for time' when reviewing new ETF products. However, with political backing and pressure from investment organizations, the possibility of approval in 2025 is entirely feasible.
However, even if the ETFs are approved, not all altcoins will succeed like Bitcoin. Coins like Dogecoin and XRP, despite being popular, still need to prove their sustainability in the eyes of institutional investors.
Risk warning:
The cryptocurrency market and related financial products like ETFs are highly volatile. Investing based on the expectation of ETF approval can yield significant profits but also carries the risk of losses if the decision is delayed or denied. Users should carefully research information and not invest beyond their financial capacity.