The flood of altcoin ETF proposals has prompted the SEC to open public comment periods and extend timelines
The U.S. Securities and Exchange Commission (SEC) has opted to extend its review periods for multiple cryptocurrency exchange-traded fund (ETF) proposals, including those tied to XRP, Ethereum, and Solana.
In a May 20 notice, the SEC announced it would take an additional 45 days to assess Bitwise’s application to incorporate staking into its Ethereum ETF.
The agency also initiated public comment periods and deeper review proceedings for Grayscale’s proposed XRP ETF and Bitwise’s Solana fund.
Bloomberg ETF analyst James Seyffart commented on social platform X that these delays align with standard SEC procedure for 19b-4 filings, stating that “almost all of these filings have final due dates in October”, making early approvals unlikely.
“No matter how crypto-friendly this SEC is. There’s no conspiracy here,” Seyffart added.
SEC likely to delay most ETF rulings until Q4
The SEC’s approach follows a surge in ETF proposals after former chair Gary Gensler’s resignation in January 2025.
Gensler’s tenure was marked by over 100 crypto-related enforcement actions, but his departure has coincided with a perceived shift in the agency’s posture.
Several high-profile cases, such as those against crypto exchange Gemini and trading firm Cumberland DRW, have since been dismissed.
Seyffart suggests that final decisions are unlikely before Q4 2025, and any early approval before late June or July would be “out of the norm”.
Litecoin emerges as potential front-runner
While most altcoin ETF decisions appear stalled until the fourth quarter, Seyffart noted that Litecoin could stand out from the crowd.
He pointed to its regulatory clarity and long-standing presence in U.S. markets as factors that may give it an edge over more complex products like Ethereum staking or XRP-based funds.
“Litecoin is one that has a higher likelihood vs others of getting approved first,” Seyffart said on X.
