Introduction
Cryptocurrency markets have become an area that has attracted attention in recent years with the increasing interest of institutional investors. The approval of Bitcoin and Ethereum ETFs stood out as an important milestone in this area. However, eyes are now turning to altcoin-based ETF applications. The US Securities and Exchange Commission (SEC) postponed the decision process of numerous altcoin spot ETF applications. Among the ETFs included in the postponement are Solana (SOL), Ripple (XRP), Litecoin (LTC), Dogecoin (DOGE), Cardano (ADA) and Ethereum (ETH).
While altcoin ETFs are closely followed by investors and industry professionals alike, we will examine the possible rationale behind the SEC’s postponement.
Altcoin ETFs with Delayed Approval by the SEC
The year 2025 will be a year of transformational decisions for the cryptocurrency ecosystem. After the Spot Bitcoin and Ethereum ETF approvals, a new expectation was born in the market: Altcoin ETFs. These ETFs will offer investors the opportunity to trade alternative digital assets such as Solana, XRP, Dogecoin, Cardano through the exchange. However, this expectation has been suspended for now with the postponement decisions made by the SEC on March 11, 2025.
The table below shows the details of the Altcoin ETF applications and their details, which the SEC decided to postpone on March 11, 2025, stating that it needed more time to evaluate the application, and the matters contained therein:
Notes on the table:
SEC File Number: Each ETF application is assigned a unique SEC File Number. This number allows tracking of all relevant documents (amendments, public comments, official notices, etc.) on the SEC’s official website.
19b-4 File Date: The date the ETF application is first filed with the SEC. The evaluation process begins after this date, but the official time calculation begins when the application is published in the Federal Register.
Federal Register Publication Date: The date the proposed rule change is officially published. This date starts the SEC’s review process.
SEC Release Number: This is a unique number assigned to each decision and announcement issued by the SEC. This number allows direct reference to the relevant decision texts and linking to past decisions.
Latest SEC Decision Date: The date of the SEC’s most recent decision on the application (usually a notice of extension of time or initiation of proceedings).
Next SEC Decision Date: The date on which the SEC must take the next step.
Final SEC Decision Deadline (240 Day Rule): Under SEC rules, a final decision (approval, rejection or initiation of a rejection proceeding) on an ETF application must be made no later than 240 days after publication of the application in the Federal Register.
Background to the Postponement Decision: What Does the SEC Intend?
The SEC frequently extends the review period, especially for ETF applications based on crypto assets. This is standard and is due to the complexity of the crypto markets and the need for due diligence. In fact, Bloomberg ETF analyst James Seyffart, in his post about the SEC’s postponement decisions, evaluated this situation as standard procedure and the fact that Atkins has not yet taken over his post.
Source: X.com
The SEC’s decision to postpone altcoin ETF filings may seem like a technical step on the surface, but there are multi-layered strategic elements behind it. In this section, we will discuss what the SEC is aiming for through these delays and the factors influencing their decision-making process.
Public and Market Expectations
The full complement of SEC board members is especially important for decisions that affect the public and market actors. The SEC chairman has not yet been confirmed by the Senate. This may create uncertainty in making decisions. For this reason, the SEC wants to wait until the board is fully formed to make its decisions on a more solid basis. According to Bloomberg’s Lydia Beyoud, the Senate Banking Committee will hold a formal confirmation hearing on March 27, 2025 to consider the nomination of Paul Atkins as SEC chairman.
Source: Bloomberg
Public Consultation
In line with the SEC’s principle of regulatory transparency, it is common practice for the SEC to solicit public input throughout the decision process. These opinions received during the deferral process are shaped by feedback from financial institutions, investor groups and legal advisors. This allows the SEC to make its decisions in a more inclusive and legally protected manner.
Preparing the Political Ground
The new political atmosphere after the US Presidential Elections in 2024 has a direct impact on cryptocurrency policies. While some politicians are more favorable to crypto, others are more cautious. In this political environment, the SEC prefers to observe the political backdrop and make its decisions based on long-term strategies, avoiding making sudden decisions.
Strengthening the Regulatory Infrastructure
Altcoin markets are characterized by higher volatility and less regulation than Bitcoin. The SEC is monitoring this area more closely to protect investors and reduce the risk of market manipulation. The approval of altcoin ETFs is scrutinized due to their more complex structure and transparency issues. Therefore, the SEC wants to build a solid regulatory infrastructure before approving applications.
Measuring Market Reactions
The market movements following the approval of Bitcoin ETFs have provided a valuable area of analysis for the SEC. The agency is carefully evaluating previous examples in order to more accurately predict the impact of altcoin ETFs. The market impact of altcoins such as Solana, XRP and ADA may have different dynamics in terms of both price volatility and volume. The SEC wants to shape its decisions by taking this data into account.
General Evaluation
The SEC’s postponement decisions on altcoin ETF applications do not indicate a negative situation, but rather the need for a more comprehensive evaluation process. Although October 2025 appears to be a critical turning point in the SEC’s decision calendar, it is possible that the process could be concluded earlier with political and regulatory dynamics. With the new SEC Chairman officially taking office, it is not a far-fetched scenario that altcoin ETF approvals will accelerate and 2025 will be known as the “Year of Altcoin ETFs”.
