SEC Delays 21Shares' XRP ETF Application, but Market Remains Optimistic

Despite the market's optimistic attitude towards regulatory developments, the SEC has once again delayed the approval process for crypto ETFs, dousing the hot market expectations with a bucket of cold water. Following yesterday's delay of five Solana ETFs, today 21Shares' XRP ETF and Grayscale's Dogecoin product also faced delays, with approval timelines pushed back by at least three weeks.

Moreover, the SEC has also delayed at least three other altcoin ETF applications, primarily due to slower internal government approval processes. This marks the SEC's third delay of related approvals this month, reflecting a cautious stance from regulators regarding altcoin ETFs.

However, the higher the community's expectations for the approval of the XRP ETF, the less patience they seem to have, as evidenced by the widespread circulation of recent rumors about approval.

Although the ETF market is developing rapidly, the SEC's attitude towards cryptocurrencies remains somewhat cautious. However, well-known analyst James Seyffart expects that despite the delays faced by spot cryptocurrency ETFs, he still believes the listing date for the XRP ETF will be announced soon.

He also anticipates that the SEC may approve as early as the end of June or early July, and at the latest, in the fourth quarter of this year. He stated that the SEC would take its time to conduct a thorough review of the ETF, especially for transformative decisions like approving the XRP ETF, where lengthy internal approval processes are normal and expected.

Nevertheless, market views suggest that despite these setbacks for the XRP ETF, the likelihood of approval remains high. Previously, most analysts believed that Litecoin (LTC), which has commodity characteristics, would be the first altcoin ETF approved after Ethereum, but the SEC's prior delay decision has also shattered this expectation.

Overall, while the SEC has released some cautious but optimistic signals, it seems that the XRP ETF and other altcoin ETF applications should be prepared for a long wait. After all, the pace of government agencies is vastly different from the rapidly evolving cryptocurrency market, and their decision-making process will not be rushed due to market performance.

Lastly, do you think the SEC will eventually approve these altcoin ETFs? Which cryptocurrency do you think will be the next to pass as a cryptocurrency ETF? Feel free to share your thoughts in the comments!