- The US SEC has delayed its decisions on various spot altcoin ETF applications this week, which include proposals for Litecoin, XRP, and Solana.
- A report from K33 Research indicates a general agreement exists, but the agency is holding off until Trump’s SEC Chair nominee is confirmed.
- The SEC is expecting documentation from the White House, while filings from institutions reveal a growing interest and demand for altcoins among clients.
Altcoins are beginning to recover gradually, coinciding with a 5% rise in Bitcoin on Friday. The US financial regulator’s postponement of decisions regarding spot altcoin Exchange Traded Fund (ETF) applications has raised some concerns among traders.
Analysts at K33 Research note that the applications for spot altcoin ETFs from asset managers demonstrate client interest and demand for investments beyond Bitcoin, which bodes well for both the financial product and the altcoin market.
Delays for Litecoin, XRP, and Solana ETF Decisions
The report titled, “This week in crypto,” released on March 14, highlights that the U.S. financial regulator has put the brakes on altcoin ETF applications; however, the interest in this investment product continues to rise.
This recent delay by the SEC does not spell the end for ETF applicants. The report suggests that clients of major asset management firms that submitted the altcoin ETF applications are likely still keen on this financial product, indicating that these delays may not adversely affect the chances of approval.
The SEC’s established procedures can accommodate such delays, and analysts indicate that there is a consensus while the agency awaits confirmation of Trump’s chair nominee. Once the financial protocols and potential conflicts of interest are disclosed, Paul Atkins’ nomination would progress to a Senate confirmation hearing.
Franklin Templeton, managing over $1.5 trillion in assets, has submitted applications for both Spot XRP and Solana ETFs this week, bringing the total number of ETF proposals pending SEC approval to 60.
James Seyffart, a Senior ETF analyst at Bloomberg, reassured crypto traders during a recent discussion with Tony Edwards on the Thinking Crypto podcast, addressing concerns regarding the altcoin ETFs and their current approval status.