SEC Delays Approval of Altcoin-Based ETFs
The US Securities and Exchange Commission (SEC) recently delayed several altcoin-based exchange-traded funds (ETFs) on March 11. Despite the delays, the approval odds for these ETFs this year are still relatively high, according to Bloomberg ETF analyst James Seyffart.
Delayed Decisions
- Grayscale’s filings for Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA) ETFs were delayed.
- Decisions on XRP ETFs filed by Canary Capital, Bitwise, and 21shares were also postponed.
- SEC delayed decisions on Solana (SOL) ETFs filed by 21shares, Canary, and VanEck.
Other Crypto ETF Delays
- BlackRock’s IBIT, Fidelity’s FBTC and FETH faced delays.
- 21shares also experienced a delay in the proposal to include staking in its Ethereum (ETH) ETF.
Notable Filings
- SEC acknowledged Grayscale’s filing for a Hedera (HBAR) ETF and Bitwise’s DOGE-related filing.
- Franklin Templeton filed an S-1 Form for an XRP ETF on March 11, entering the altcoin exchange-traded product race.
High Chances of Approval
According to Seyffart, the delays were expected and considered standard procedure. The final deadlines for an SEC decision on all ETFs are due in October, and the odds of approval remain relatively high.
Approval Odds
Seyffart and Bloomberg senior ETF analyst Eric Balchunas published approval odds for various altcoin ETFs. The probabilities of approval this year are as follows:
- LTC: 90%
- DOGE: 75%
- SOL: 70%
- XRP: 65%
These odds have significantly increased since President Donald Trump’s election, indicating a positive trend.
If regulatory conditions in the US continue to improve, the odds for all ETFs could see further increases.
