The SEC delayed several ETF applications today, specifically targeting those based on Solana, XRP, Litecoin, and Dogecoin. The Commission has faced recent criticism for its pro-crypto actions, and this may help buy it some time.
Nonetheless, it also acknowledged fresh applications shortly before delaying this group. Many of these filings came from the same issuers or applied to the same cryptoassets as the first group.
SEC Delays Altcoin ETFs
The SEC has been undergoing many changes recently, which has prompted a wave of altcoin ETF applications from several potential issuers.
The Commission began acknowledging these applications, creating a series of deadlines to either approve or reject them. Today, the SEC punted on a tranche of applications, delaying proposals for Solana, XRP, and others.
In total, the SEC delayed approval for six different ETFs based on Solana, XRP, Litecoin, and Dogecoin. The acknowledged Solana ETF applications previously had a deadline set for today, and this extension gives the Commission a chance to consider the matter more fully.
By contrast, the XRP ETF, did not have an SEC deadline until several months from now. The Commission delayed applications from Canary and Grayscale but not Bitwise; this final proposal is the most recent of the three.
Bizarrely, the Commission acknowledged another application on its website today, an XRP ETF prospectus filed by Franklin Templeton.
In other words, the Commission’s rationale here is a bit difficult to understand. Even as the SEC delays several ETFs, it’s also acknowledging several fresh ones.
“Yes, the SEC just punted on a bunch of alt coin ETF filings including Litecoin, Solana, XRP & DOGE. It’s expected as this is standard procedure & Atkins hasn’t even been confirmed yet. This doesn’t change our (relatively high) odds of approval. Also note that the final deadlines aren’t until October for these,” wrote ETF analyst James Seyffart.
In addition to Franklin Templeton’s XRP ETF, it also recognized a Dogecoin ETF application and another based on Hedera.
There is one possible explanation for the SEC’s choice to delay ETF proposals. Approving fresh altcoin ETFs would significantly shake up the market, and it’s already in a moment of chaos.
The Commission is short a member until its new Chair gets confirmed by the Senate, and it may already be delaying other actions until this happens.
“Eth staking and in-kind also delayed. Everything delayed. It’s like the NYC-bound Amtrak on monday morning: Mechanical issues in DC,” wrote analyst Eric Balchunas.
One of the SEC’s Commissioners has dramatically broken with precedent to directly criticize its new pro-crypto turn, and the Commission has continued taking bold actions since.
If the SEC approves these altcoin ETFs immediately, it might invite further fractures of this nature.
Of course, the Commission hasn’t explicitly stated any of its intentions on this matter. The SEC took its time to consider ETF applications under Gary Gensler thoroughly, and the trend may simply be continuing.
One thing does seem clear, however. With this many postponements in one day, any new altcoin ETF approvals might take several more months to come.
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