The U.S. Securities and Exchange Commission (SEC) has delayed decisions on several altcoin-based exchange-traded funds (ETFs) as part of its standard review process. These delays, announced on various dates in 2025, affect ETFs tied to altcoins like XRP, Dogecoin (DOGE), Solana (SOL), Litecoin (LTC), Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). Here’s a breakdown of the key points:
Affected ETFs and Timelines:
Decisions on XRP and DOGE ETFs, including filings from Franklin Templeton, Bitwise, Grayscale, and others, have been postponed to mid-June 2025, with final deadlines set for October 2025.
Solana ETF decisions, involving filings from VanEck, 21Shares, and Canary Capital, are also delayed, with a final decision expected by October 2025.
Litecoin, Cardano, and Hedera ETFs, primarily from Grayscale and Canary Capital, face similar delays, with review dates extended to June 2025.
Polkadot and Ethereum staking ETF proposals, including Grayscale’s Polkadot Trust and Fidelity’s Ethereum ETF staking, have been pushed to June 10–11, 2025.
Reasons for Delays:
The SEC cites the need for additional time to review proposed rule changes and ensure compliance with regulations, a common procedural step.
The transition in SEC leadership, with Paul Atkins (a pro-crypto figure) assuming the chair role in early 2025, may contribute to the delays, as his confirmation process is ongoing.
Market Impact and Sentiment:
Analysts like Bloomberg’s James Seyffart and Eric Balchunas view these delays as routine and not indicative of rejection. Approval odds remain high, with Litecoin at 90%, Dogecoin at 80%, Solana at 90%, and XRP at 85% for 2025.
Betting markets, such as Polymarket, reflect optimism, with an 80% probability of XRP ETF approval by year-end 2025.
X posts show mixed sentiment, with some traders seeing the delays as procedural and others noting market resilience, as altcoins like Polkadot and Hedera ticked up slightly after the news.
Broader Context:
The SEC’s cautious approach stems from its history of scrutinizing crypto ETFs, though recent approvals of Bitcoin (January 2024) and Ethereum (July 2024) ETFs signal a shifting regulatory landscape.
The Trump administration’s crypto-friendly stance, including a 2025 executive order, may boost approval chances later in the year.
Up to 70 crypto ETF filings are under review, indicating strong institutional interest.
Conclusion
While these delays extend uncertainty, they align with the SEC’s thorough evaluation process. Investors are eyeing June and October 2025 as key decision points, with potential approvals possibly driving altcoin demand and prices. Always conduct your own research, as crypto investments carry high risks.