In multiple notices submitted by the U.S. Securities and Exchange Commission on August 18, the approval decisions for three highly anticipated cryptocurrency ETF applications have all been postponed to October. The decision date for the Truth Social Bitcoin and Ethereum ETFs is set for October 8, while the decision date for the Solana ETF applied for by 21Shares and Bitwise is October 16, and the decision date for the 21Shares Core XRP Trust has been postponed to October 19.
This arrangement focused in October is no coincidence but a strategic choice made by the SEC after careful consideration. Compared to the previous rapid approvals of Bitcoin and Ethereum spot ETFs, the SEC has clearly adopted a more cautious attitude towards altcoin ETFs. From a regulatory perspective, Bitcoin and Ethereum, as the two largest cryptocurrencies by market capitalization, have relatively mature markets and regulatory frameworks. In contrast, altcoins like Solana and XRP, despite having significant market capitalizations, still face many uncertainties regarding regulatory recognition, market manipulation risks, and liquidity assurance.
The Solana ETF holds special symbolic significance. If approved, it will be one of the first spot Solana ETFs in the U.S., setting an important precedent for the approval of other altcoin ETFs. As one of the fastest-growing public chains in recent years, Solana's ecosystem has become quite mature, boasting a large number of decentralized applications and active users. However, the Solana network has previously experienced multiple outages, raising questions about its stability and reliability, which the SEC will inevitably consider when evaluating these technical risks.
The approval of the 21Shares Core XRP Trust faces a complex regulatory dilemma. Although the legal dispute between XRP and its issuing company Ripple has mostly been resolved, the controversy over its security attributes has not fully subsided. The XRP Trust initially submitted its application in February of this year and has undergone multiple revisions. Before the SEC granted itself an additional 60 days for review, the application was originally set to reach the 180-day statutory review deadline this Wednesday.
According to Bloomberg ETF analyst James Seyffart's observations, the SEC typically requires the full time to respond to 19b-4 applications, making early decisions unusual. This regulatory practice indicates that the SEC is fully utilizing the statutory review period to conduct a comprehensive assessment of these complex financial products. The concentration of decisions in October may mark a significant turning point in the SEC's regulatory policy on cryptocurrency ETFs.
In the current cryptocurrency ETF market, BlackRock's iShares Bitcoin Trust holds an absolute dominant position, with assets under management exceeding $87 billion. For the upcoming altcoin ETFs, standing out amid competition from giants like BlackRock will be a significant challenge. Regardless of the approval results, the fate of these ETFs will have a profound impact on the entire cryptocurrency industry.
