Bloomberg ETF analyst James Seyffart suggests that among the numerous cryptocurrency fund applications under review, the U.S. Securities and Exchange Commission (SEC) is more likely to approve a Litecoin (LTC) ETF first.
The SEC has postponed its decision on Bitwise’s application to include an Ethereum (ETH) staking ETF and on Grayscale’s Ripple (XRP) ETF proposal—a move analysts anticipated.
Key Delays and Their Implications
On May 20, the SEC announced a 45-day extension for the Bitwise Ethereum ETF decision, citing the need to "consider the proposed rule change and the issues raised." The agency must decide by May 22 or defer again.
Similarly, the SEC delayed rulings on:
- Grayscale’s XRP-tracking ETF
- Bitwise’s Solana (SOL)-tracking fund
The agency is gathering public input and initiating procedures for further analysis to ensure compliance with regulatory standards.
Analyst Insights
James Seyffart noted on X (formerly Twitter) that these delays were expected, as the SEC "typically uses all available time to respond to 19b-4 filings."
👉 Why SEC delays are routine for crypto ETFs
"Nearly all these filings have final deadlines in October," Seyffart said. Early approvals would be "unusual." He emphasized:
"No matter how crypto-friendly this SEC might be, there’s no conspiracy here."
Upcoming ETF Deadlines and Predictions
Seyffart expects delays for other spot crypto ETF applications, including Litecoin (LTC). However, he added:
- "Litecoin has a higher chance of approval ahead of others."
- Decisions on XRP ETPs are unlikely before late June or early July, with Q4 being more probable.
Critical SEC Dates in June
| ETF Applicant | Asset Tracked | Deadline |
|---------------------|--------------|---------------|
| Grayscale | Polkadot (DOT) | June 11 |
| 21Shares | Polkadot (DOT) | June 24 |
Broader Context: SEC’s Shifting Stance
After former SEC Chair Gary Gensler’s resignation in January, the agency has adopted a more favorable stance toward crypto:
- 100+ regulatory actions were taken under Gensler (2021–2024).
- Recent cases against firms like Gemini and Cumberland DRW were dropped.
👉 How political changes impact crypto regulation
FAQ
Q1: Why did the SEC delay Ethereum and XRP ETF decisions?
A1: The SEC routinely uses full review periods for complex filings, especially those involving staking or newer assets like XRP.
Q2: Which ETF is most likely to be approved next?
A2: Litecoin (LTC) ETFs have a higher probability due to their established market and regulatory clarity.
Q3: When can we expect final decisions?
A3: Most deadlines fall in October 2024, though XRP rulings may extend to Q4.
Q4: Has the SEC become more crypto-friendly?
A4: Yes, post-Gensler, the SEC has dismissed several high-profile cases, signaling a shift.