SEC Delays Decision on Spot Altcoin ETF Applications
Date: 2025-03-13 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
On March 11, 2025, the SEC delayed its decision on several important applications related to cryptocurrency ETFs. These include products based on popular altcoins such as Solana, Litecoin, Dogecoin, and XRP. Nate Geraci, president of ETFStore, noted that such delays are not unexpected, and the process itself will take longer since the new SEC chairman has not yet taken office. Recall that the candidate for the position of SEC head, Paul Atkins, was nominated by President Donald Trump, but his candidacy has not yet been considered by Congress.
Bloomberg analyst James Seyffarth emphasized that the regulator's actions are in line with standard procedures, and the delay is due to the absence of a permanent head of the SEC. He also added that despite the delayed deadlines, the chances of ETF product approval remain high, and final decisions will not be made before October 2025. In February of this year, Seyffarth, together with colleague Eric Balchunas, predicted high chances of approval for Litecoin-ETF (90%) and Dogecoin-ETF (75%), while Solana and XRP had lower rates - 70% and 65%, respectively.
It is also worth noting that on March 11, Franklin Templeton joined the list of applications for approval, filing an application to create the Franklin XRP Trust. This confirms the growing interest of investors in cryptocurrency ETFs.
Recall that the SEC opened the possibility of trading spot Bitcoin ETFs back in January 2024, and as of the end of February 2025, the total inflow of funds into such products amounted to $37.1 billion. However, according to analysts from Standard Chartered, the outflow of funds from BTC ETFs is expected to continue, despite positive forecasts for the market. According to Bitwise estimates, up to $50 billion may flow into cryptocurrency ETFs in 2025.
