In a move that didn’t catch anyone off guard, the U.S. Securities and Exchange Commission (SEC) has opted to delay its rulings on a pair of high-profile crypto exchange-traded fund (ETF) proposals. Bitwise’s bid to incorporate Ether staking into its existing ETF and Grayscale’s attempt to launch an XRP-focused fund are both on hold for now.
On May 20, the SEC announced it was pushing back its decision on Bitwise’s Ether staking application by 45 days, citing the need for additional time to evaluate the proposed rule change and the broader implications. The deadline for the initial decision was set for May 22, but few in the industry expected the agency to meet that mark.
In tandem, the SEC also postponed its verdicts on Grayscale’s proposed XRP ETF as well as Bitwise’s plan for a Solana (SOL) ETF. In each case, the agency opened the floor to public comment and launched proceedings to further scrutinize whether the proposed products align with regulatory requirements.
Bloomberg ETF analyst James Seyffart weighed in on the matter on X (formerly Twitter), stating the delays were entirely anticipated. According to Seyffart, the SEC routinely uses the full review period when it comes to 19b-4 filings—the formal proposals required to list new ETFs.
“Almost all of these filings have final due dates in October,” Seyffart noted. “So, any early approvals would be highly unusual.”
Seyffart dismissed conspiracy theories about the SEC’s motives, adding, “Even with this more crypto-friendly SEC, there’s nothing suspicious here—just standard operating procedure.”
While the delays themselves were expected, one interesting twist in Seyffart’s commentary came when he pointed to Litecoin (LTC) as a dark horse. He believes LTC-based ETF products have a relatively higher probability of getting approved ahead of others in the altcoin category.
“If we do see early approvals from the SEC on any of these altcoin ETFs, late June or early July would be the soonest,” Seyffart predicted. “But more realistically, we’re looking at the fourth quarter.”
The SEC is currently juggling a wave of crypto ETF filings, many of which have looming deadlines. For example, the agency must rule on Grayscale’s Polkadot (DOT) ETF by June 11, and on 21Shares’ DOT proposal by June 24.
This surge in ETF applications came after a major shift in the regulatory landscape: the resignation of former SEC Chair Gary Gensler following Donald Trump’s election win in November. Gensler’s tenure was defined by a tough approach to digital assets, racking up more than 100 enforcement actions related to crypto between 2021 and his departure on January 20.
Since Gensler’s exit, the tone inside the SEC has changed. Several high-profile cases have been quietly dismissed. Notably, the regulator dropped its lawsuits against Gemini on February 26 and Cumberland DRW on March 4—signals that suggest a less adversarial posture toward the crypto sector.
Whether that new approach translates into ETF approvals remains to be seen. But if Seyffart and other analysts are right, investors shouldn’t expect a green light on these altcoin ETFs until at least the fall—if not later.
