#AltcoinETFsPostponed

On March 11, 2025, the U.S. Securities and Exchange Commission (SEC) announced a delay in its decisions regarding several applications for Exchange-Traded Funds (ETFs) based on alternative digital currencies (altcoins) such as Solana (SOL), Ripple (XRP), Litecoin (LTC), and Dogecoin (DOGE). These delays included applications submitted by companies such as Grayscale, 21Shares, VanEck, and Canary Capital.

Reasons for the Delay

These delays are due to several regulatory factors:

• Lack of regulated futures markets: Unlike Bitcoin and Ethereum, most alternative digital currencies do not have regulated futures markets like those offered by the Chicago Mercantile Exchange (CME), which reduces transparency and increases concerns about price manipulation.

• Regulatory concerns: These concerns include issues related to investor protection, secure custody solutions for digital assets, and compliance with regulatory standards.

Future Outlook

Despite the delays, analysts remain optimistic about the prospects of approval for these funds in the near future:

• Change in leadership at the SEC: Following the resignation of former committee chair Gary Gensler, Paul Atkins, known for his pro-cryptocurrency stance, has been nominated to lead the committee. This change is expected to lead to a more supportive regulatory environment for innovation in the digital currency space.