SEC’s Crypto ETF Delay: What It Means for Altcoins and the Market

Main Points:

• SEC postpones decisions on five spot altcoin ETFs, extending review periods by 45 days
• Final deadlines for all applications now fall in Q3–Q4 2025, with October being pivotal
• Market impact: modest price fluctuations amid sustained investor optimism
• Analyst views: delays “as expected,” not indicative of final outcomes
• Outlook: potential approvals under new SEC leadership later this year

1. SEC Pushes Back ETF Decisions

On April 29, 2025, the U.S. Securities and Exchange Commission (SEC) officially announced a 45-day extension for its determinations on five proposed spot cryptocurrency ETFs. These applications—covering Solana (SOL), XRP, Hedera (HBAR), Dogecoin (DOGE), and Ethereum (ETH) (with staking features)—were originally filed under Rule 19b-4 of the Securities Exchange Act. By invoking its authority to extend review periods up to 240 days from Federal Register publication, the SEC reset each deadline into mid-June 2025 for an initial decision, with the ultimate deadline for final approval or disapproval now concentrated around October 2025.

The Commission justified the delays by citing the need for “additional time to evaluate proposed rule changes and related issues,” a standard procedural move rather than an outright rejection. Notably, the initial Federal Register postings for these proposals occurred in March 2025, establishing May 2025 as the first-series deadline—now deferred by 45 days to June.

2. Breakdown of Delayed Applications

*Exact date pending final notice 

These applications represent the first wave of altcoin ETFs aiming to replicate the success of the widely anticipated Bitcoin and Ethereum spot products already in play. The SEC’s extensions apply uniformly to each, leveraging the same 45-day increment allowed under Section 19(b)(2) of the Exchange Act, with the option to push further toward a 240-day cap if deemed necessary.

3. Market Reaction and Price Movements

Despite headline concerns, the XRP price held relatively steady around $2.24 (≈ ¥320) on April 30, 2025, reflecting investor anticipation rather than alarm. Ethereum and Bitcoin spot ETF listings in the U.S. have historically attracted substantial institutional inflows, boosting liquidity and market capitalization post-listing. Analogously, market participants expect similar dynamics for upcoming altcoin ETFs, tempering short-term price dips amid regulatory uncertainty.

Smaller-cap altcoins like Solana and Dogecoin saw muted volume increases following the SEC announcement. Many traders have shifted focus to other venues—particularly Canadian platforms, where the world’s first staking-reward Solana ETF was recently approved by Canadian regulators, underscoring diverging regulatory landscapes across North America.

4. Analyst Perspectives: “Nothing Unexpected”

Bloomberg ETF analyst James Seyffart characterized the SEC’s staggered extensions as “expected,” noting that most spot altcoin ETF deadlines are scheduled for October 2025 or later”. His colleague Eric Balchunas drew parallels to prior Bitcoin and Ethereum ETF review cycles, which underwent multiple 45-day delays before eventual approvals—suggesting these procedural pauses carry no bearing on ultimate outcomes.

Moreover, ETF expert Nate Geraci of The ETF Store expressed confidence that approvals will materialize within 2025, despite the current deferrals. The prevailing view is that new SEC leadership under Chair Paul Atkins—confirmed by the Senate shortly after these delays—will expedite final determinations once institutional frameworks are in place.

5. Regulatory Outlook Under Chair Atkins

With Paul Atkins assuming the SEC chairmanship, many industry voices anticipate a more crypto-friendly regulatory stance. Historical patterns under previous administrations show chair appointments often correlate with shifts in enforcement aggressiveness and approval timelines. Analysts predict that once Atkins formalizes the Commission’s committee structures and engages external stakeholders, rulings could accelerate—potentially compressing the October deadlines if rule-change proposals meet revised governance criteria.

Additionally, the SEC’s Crypto Asset and Cyber Unit, established to oversee digital-asset enforcement, is expected to refine guidelines for compliance, custody, and market-making, thereby smoothing the path for ETF issuances. Stakeholders are monitoring upcoming rule-making announcements slated for mid-2025, which may codify staking and custody standards critical for spot ETH ETF approvals.

6. Strategic Implications for Investors

For crypto investors and institutions scouting for new yield sources:

1. Maintain positions in anticipation of final rulings: Delays are procedural, not rejections.
2. Monitor Canadian and European venues for interim ETF exposure, where altcoin products may launch sooner.
3. Assess staking-reward structures: ETH staking ETFs could offer additional yield streams absent in pure spot vehicles.
4. Stay informed on SEC rule-making developments under Chair Atkins, particularly around custody and market-making requirements.

By adopting a long-term horizon, market participants can position portfolios advantageously ahead of eventual approvals, capitalizing on liquidity inflows once U.S. listings commence.

Conclusion

The SEC’s 45-day extensions for Solana, XRP, Hedera, Dogecoin, and Ethereum spot ETF applications mark a familiar procedural phase, pushing initial decisions into mid-June 2025 and final deadlines into October. Market reactions have been circumspect, reflecting confidence that these are intermediate steps rather than rejections. Under new leadership, the Commission is poised to integrate stakeholder feedback and formalize guidelines, laying groundwork for potential altcoin ETF approvals later this year. For investors exploring new yield avenues and blockchain applications, strategic preparedness and diversification across jurisdictions will be key to capturing opportunities as regulatory clarity emerges.