The U.S. Securities and Exchange Commission (SEC) recently announced a delay in its decision to approve several cryptocurrency exchange-traded funds (ETFs), including those tied to XRP, Solana, Litecoin, and Dogecoin. In a series of filings on March 11, the SEC stated that it would “designate a longer period” to review proposed rule changes that would allow the ETFs to proceed. Among the affected ETFs are Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF, with decisions now postponed until May, and final deadlines potentially extending to October. This delay has drawn market attention, but analysts generally believe it is part of the SEC’s standard procedure and does not affect the likelihood of eventual approval.
Bloomberg ETF analyst James Seyffart noted on social media platform X that the SEC’s delay in deciding on multiple altcoin ETFs was “expected,” emphasizing that “the odds of final approval remain relatively high.” He also mentioned that Paul Atkins, former SEC commissioner and President Trump’s nominee to chair the SEC, has yet to be confirmed by Congress, adding uncertainty to the regulatory process. Fellow analyst Eric Balchunas added that various products, including Ethereum staking ETFs, are also facing delays, suggesting that the market should brace for a “systemic slowdown.”
This is not the first time the SEC has postponed decisions on cryptocurrency ETFs. On February 28, the agency extended the review period for Cboe Exchange’s application to list options tied to Ethereum ETFs. Since Trump’s election victory and the resignation of former SEC Chair Gary Gensler, the SEC has received a flood of altcoin ETF applications. However, Gensler’s aggressive regulatory stance toward the crypto industry during his tenure from 2021 until his resignation in January 2024 sparked controversy. Data shows that over 100 crypto-related enforcement actions were initiated during his term. Following Gensler’s departure, the SEC has dismissed cases against crypto firms such as Gemini and Cumberland DRW, while acting Chair Mark Uyeda has proposed easing regulatory restrictions on crypto trading platforms.
Although the market remains cautious about the short-term approval of ETFs tied to XRP, Solana, and other altcoins, analysts generally believe that a key turning point could come before October as the regulatory environment softens and policy windows approach. Currently, investors are closely monitoring the progress of SEC appointments and the Trump administration’s policy direction toward the crypto industry, which could introduce new variables into the next phase of ETF approvals.
