Main Points:
- The U.S. SEC has postponed decisions on several spot crypto ETF applications, extending deadlines into October (Truth Social BTC/ETH, Solana, XRP, Litecoin, etc.).
- These delays follow a pattern of SEC seeking more time to evaluate staking, custody, and investor protection issues.
- Regulatory clarity is gradually improving: new SEC guidance on disclosures and a potential streamlined ETF application process may reduce review timelines.
- Despite delays, approval odds for altcoin ETFs remain high, and market participants continue innovating (e.g., Solana staking ETF structure).
1: SEC’s Recent Postponements of Crypto ETF Decisions
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decisions on a suite of high-profile spot crypto ETF applications. On August 18, notices extended the review deadlines for several funds: October 8 for the NYSE Arca–filed Truth Social Bitcoin and Ethereum ETF; October 16 for 21Shares and Bitwise’s Solana ETFs; and October 19 for the 21Shares Core XRP Trust.
These delays are part of a broader pattern affecting applications tied to various altcoins—Litecoin and others have similarly been pushed to later dates, with approval decisions expected in October.
2: Why the SEC Is Taking Its Time
Bloomberg analysts, including James Seyffart, characterize these extensions as procedural and anticipated, citing concerns around asset custody, staking mechanics, fraud potential, and investor protection. The SEC’s filings explicitly state that extended periods allow “sufficient time to consider the proposed rule change and the issues raised therein”.
3: Emerging Regulatory Framework Points to Faster Approvals
In July, the SEC released a 12-page guidance on disclosure requirements for crypto ETFs, marking a shift toward a more structured regulatory landscape. The guidance covers unique aspects like custody arrangements and risk disclosures. Notably, the SEC is exploring a standardized ETF listing template to replace time-consuming individual exemptions, potentially reducing review times from 240 to 75 days.
4: Despite Delays, Optimism Lingers Among Stakeholders
Many in the industry remain optimistic about eventual approvals. Bloomberg assesses approval odds for spot altcoin ETFs, citing high probabilities: Litecoin at about 90%, Solana around 70%, and XRP approximately 65%—and these estimates were made before the current round of extensions.
Meanwhile, issuers are adopting innovative structures to circumvent regulatory hurdles. For example, REX-Osprey launched a U.S. Solana ETF with staking exposure using an indirect investment structure, raising $12 million on its first day of trading. Summary Image (to insert here)
Insert a chart illustrating the extended deadlines across multiple crypto ETF applications (e.g., Truth Social BTC/ETH: Oct 8; Solana: Oct 16; XRP: Oct 19; Litecoin: Oct 23, etc.).
5: Implications for Practitioners and Investors
For professionals scouting new crypto revenue streams and practical blockchain applications, these developments signal both caution and opportunity. The continued delay underscores regulatory prudence, but evolving clarity—guided by detailed disclosures and more efficient approval workflows—suggests near-future openings for institutional-grade products. Entrepreneurs and asset managers should refine custody and staking mechanisms and prepare for accelerated paths to approval once frameworks are formalized.
Conclusion
While the SEC continues to delay decisions on several spot crypto ETF applications, it is also laying the groundwork for a more transparent and streamlined regulatory regime. The current postponements, though frustrating, are part of a methodical approach to ensure investor protection and sound market practices. As approval odds remain high and innovators explore alternative structures, the stage is being set for broader institutional adoption of crypto-based investment products.
