The recent delays in the approval of altcoin-based exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) have caused a stir in the crypto community. On March 11, the SEC postponed decisions on several ETFs, including those based on popular altcoins like Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA). Despite the setbacks, ETF analyst James Seyffart believes that the odds of approval for these ETFs this year are still relatively high.
Grayscale’s filings for DOGE, XRP, LTC, and ADA ETFs were among those delayed, as well as filings by Canary Capital, Bitwise, and 21shares for XRP ETFs. The SEC also postponed decisions on Solana (SOL) ETFs filed by 21shares, Canary, and VanEck. Additionally, delays were seen in proposals for in-kind creation and redemptions for BlackRock’s IBIT, as well as Fidelity’s FBTC and FETH. 21shares also faced a delay in its proposal to include staking in its ETH ETF.
Despite the delays, the SEC did acknowledge Grayscale’s filing for a Hedera (HBAR) ETF and Bitwise’s DOGE-related filing. Franklin Templeton also joined the altcoin ETF race by filing an S-1 Form for an XRP ETF on March 11.
Seyffart explained that the delays were expected and part of the standard procedure. He noted that the confirmation of Paul Atkins as the new SEC chair could also be a factor in the delays. However, he emphasized that the final deadlines for an SEC decision on all ETFs are in October and that the odds of approval are still favorable.
In February, Seyffart and Bloomberg’s senior ETF analyst Eric Balchunas published their approval odds for LTC, SOL, XRP, and DOGE ETFs. LTC has the highest probability of approval at 90%, followed by DOGE at 75%, SOL at 70%, and XRP at 65%. These odds have significantly increased since President Donald Trump’s election, indicating a positive trend in regulatory conditions in the US.
It is worth mentioning that the odds for all ETFs listed by Balchunas and Seyffart could improve further if regulatory conditions in the US continue to evolve positively. The delay in the approval of altcoin ETFs may be frustrating for investors, but the overall outlook remains optimistic for the cryptocurrency market.