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With the crypto market once again under waves of postponement, the momentous decisions regarding a series of proposed spot exchange-traded funds (ETFs) for prominent cryptocurrencies like XRP, Dogecoin, Solana, and Litecoin have been delayed by the US Securities and Exchange Commission. Consequently, the possible approval dates have been extended to May 2025, affecting applications from renowned companies like VanEck, Canary, and Grayscale.
SEC Postpones Decision on XRP, Dogecoin, SOL, and LTC ETFs
The commission is yet to provide a specific reason for the extended review period: “The Commission deems it suitable to assign a lengthier period to take action regarding the proposed rule change, as amended by Amendment No. 1, ensuring adequate time to ponder the proposed rule change and related matters.”
As per official documents, the ETFs impacted and their revised target decision dates comprise of VanEck Spot Solana ETF on May 19, 2025; Canary Spot Litecoin ETF on May 13, 2025; Canary Spot Solana ETF on May 19, 2025; Canary Spot XRP ETF on May 22, 2025; Canary Spot ADA ETF on May 29, 2025; Grayscale Spot XRP ETF on May 22, 2025; and Grayscale Spot Dogecoin ETF on May 21, 2025.
James Seyffart, a Bloomberg ETF analyst, views these delays as common practice and voiced his perspective in an X post, “The SEC has deferred decisions on a series of altcoin ETF filings, including Litecoin, Solana, XRP & DOGE. This move is anticipated as it’s standard procedure and Atkins, the nominated chairman, is yet to be confirmed. Nevertheless, our (relatively high) chances of approval remain unchanged. Keep in mind, the final deadlines extend until October.”
In reaction to the news, Eric Balchunas, another Bloomberg analyst, pointed out delays in every aspect. He wittily compared the situation with the Monday morning NYC-bound Amtrak, referring to unanticipated “mechanical issues in DC.”
Notably, yesterday, Franklin Templeton, a renowned asset manager, lodged a filing for its XRP ETF. In its official submission, the firm, which oversees approximately $1.6 trillion, articulated, “The fund intends to mirror the performance of XRP.”
In early December, the White House disclosed the nomination of Paul Atkins, a pro-crypto businessman and former SEC Commissioner, as the prospective chair for the SEC. The confirmation hearing dates are not yet decided by Congress, leaving the timeline for the leadership transition ambiguous.
Meanwhile, acting Chairman Mark Uyeda has proposed retraction of certain regulations that would have expanded the monitoring of alternative trading systems to incorporate crypto firms. This proposal indicates the continuing contention among regulators over catering to the rapidly evolving digital asset sector.
As for the projected approval rates for these proposed ETFs, Bloomberg’s ETF experts Seyffart and Eric Balchunas have predicted 90% for Litecoin, 75% for Dogecoin, and 70% for Solana, while XRP stands at 65%.
At the time of reporting, XRP was trading at $2.17.
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FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment fund and exchange-traded product, traded on stock exchanges like single stocks. ETFs are designed to track the value of an underlying asset or index.
What does the delay mean for the crypto market?
A delay in the approval of these ETFs can lead to a temporary slowdown in the market. However, it also provides the SEC with more time to consider the potential risks and benefits, which can contribute to a more stable and secure marketplace in the long run.
What are the chances of approval for these ETFs?
According to Bloomberg’s ETF experts, the chances of approval are relatively high, with Litecoin having a 90% chance, Dogecoin 75%, Solana 70%, and XRP 65%.
How may this delay impact investors?
While the delay may cause short-term uncertainty or disappointment among investors, it also provides opportunity for further market analysis and investment planning. Ultimately, the impact will vary depending on individual investor strategies and market responses.
