On March 11, the US Securities and Exchange Commission (SEC) postponed decisions regarding several exchange-traded funds (ETFs) that focus on altcoins. As noted by ETF analyst James Seyffart, the likelihood of these ETFs receiving approval this year remains fairly promising.
The SEC’s delays included Grayscale’s applications for ETFs centered on Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA). Additionally, decisions on XRP ETFs submitted by Canary Capital, Bitwise, and 21shares were also deferred.
Furthermore, the regulator postponed the evaluation of Solana (SOL) ETFs filed by 21shares, Canary, and VanEck, marking the last altcoin-related ETF delay with Canary’s Litecoin submission.
Other notable crypto ETF delays involved in-kind creations and redemptions for BlackRock’s IBIT, as well as Fidelity’s FBTC and FETH products. A delay also occurred in 21shares’ proposal to incorporate staking into its Ethereum (ETH) ETF.
In spite of these setbacks, the SEC did recognize Grayscale’s application for a Hedera (HBAR) ETF and Bitwise’s submission related to DOGE.
Additionally, on March 11, Franklin Templeton submitted an S-1 Form for an XRP ETF, entering the competitive landscape of new altcoin exchange-traded products.
High chances of approval
Seyffart noted that such delays were anticipated, describing the situation as “standard procedure.” He also mentioned that Paul Atkins has yet to be confirmed as the new SEC chair, which contributes to the delays.
The analyst pointed out that the final deadlines for the SEC to make decisions on all ETFs are set for October, and the chances for approval continue to look relatively optimistic.
In February, Seyffart and senior ETF analyst Eric Balchunas released their predictions regarding the approval odds for Litecoin, Solana, XRP, and Dogecoin ETFs.
LTC tops the list with a 90% likelihood of approval this year, while DOGE follows in second with a 75% probability. SOL has a close 70% chance, and XRP sits at 65% for a successful approval.
The analysts noted that these probabilities were under 5% prior to President Donald Trump’s election in November, highlighting the significant improvement in the current figures.
Furthermore, the chances for all ETFs mentioned by Balchunas and Seyffart could increase if regulatory conditions in the US continue to improve.
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