The US Securities and Exchange Commission (SEC) has postponed its decision on spot exchange-traded funds (ETFs) for many altcoins. This development is being closely followed by investors and market analysts, and it provides important clues about the SEC’s regulatory approach to crypto assets.
Bloomberg ETF analysts Eric Balchunas and James Seyffart stated that the SEC’s postponement decisions were expected. Seyffart said that these delays did not reduce the likelihood of approval:
“Yes, the SEC has postponed a number of altcoin ETF applications, including Litecoin, Solana, XRP, and DOGE. This is expected because this is standard procedure and SEC Commissioner Mark T. Uyeda is still in office. This does not change our likelihood of approval. Also, the deadlines for these applications are not until October.”
Similarly, Balchunas recalled that decisions on currently traded Bitcoin and Ethereum spot ETFs have also been postponed, adding, “Everything is being postponed.”
Postponed Spot ETF Applications
Among the applications postponed by the SEC are:
- VanEck Spot Solana ETF
- Canary Spot Litecoin ETF
- Canary Spot Solana ETF
- Canary Spot XRP ETF
- Grayscale Spot XRP ETF
- Grayscale Spot Litecoin ETF
- Grayscale Spot Dogecoin ETF
- Grayscale Spot Cardano ETF
- 21Shares Spot XRP ETF
- 21Shares Spot Solana ETF
- Bitwise Spot XRP ETF
These delays indicate that the SEC is continuing its oversight process over the crypto markets. However, it is important to note that Bitcoin and Ethereum spot ETFs have also been postponed and eventually approved many times in the past.
Reasons for SEC’s Delay Decision
There are several key factors behind the SEC’s decisions:
1. Market Volatility
Altcoins such as Dogecoin, Solana, Litecoin, and XRP are among the assets with high price volatility. The SEC is evaluating the risks that such volatile assets may pose to investors.
2. Market Manipulation Concerns
The SEC takes a cautious approach to the possibility of manipulation in cryptocurrency markets. It is known that spot ETFs undergo a detailed review process to determine whether they are vulnerable to manipulation.
3. The Innovation of Spot Crypto ETFs
While Bitcoin and Ethereum spot ETFs have recently been approved, the SEC prefers to conduct more analysis before approving similar products for other altcoins.
4. Regulatory Uncertainties
The political and regulatory environment in the US may affect the SEC’s approach to crypto assets.
SEC’s Possible Future Steps
How the SEC’s process of approving crypto spot ETFs will unfold depends on several important factors:
How the regulatory environment in the US will change
Political developments and new administrations’ approach to crypto assets
The maturation of the crypto market and the development of market infrastructure
The possibility of the SEC approving altcoin spot ETFs is still on the table. Considering the process that has been experienced with Bitcoin and Ethereum ETFs before, it is possible to say that these delays do not mean a final rejection.
Investors and market experts who follow the cryptocurrency markets closely will continue to follow the SEC’s decisions closely. The decisions to be taken in the coming months may signal the beginning of a new era in the crypto market.
Author: Besim Şen
