The U.S. Securities and Exchange Commission (SEC) has delayed decisions on multiple cryptocurrency exchange-traded funds (ETFs), including those tied to Ether staking and XRP. Analysts, including Bloomberg’s James Seyffart, say the delays were widely expected.
SEC Extends Review Period for Bitwise and Grayscale Applications
On May 20, the SEC officially postponed its ruling on Bitwise’s proposal to incorporate staking into its Ether ETF, extending the review by 45 days. The agency also delayed decisions on Grayscale’s XRP ETF and Bitwise’s Solana ETF, citing the need for additional public comments and further analysis to ensure regulatory compliance.
These actions fall in line with the SEC’s usual approach to handling 19b-4 filings. “The SEC typically takes the full time to respond,” Seyffart noted on X, explaining that early decisions are rare and usually indicate unusual circumstances.
DELAYS on Ether ETF staking for @BitwiseInvest and on @Grayscale's XRP ETF filing. (Both expected IMO) pic.twitter.com/zycAqnz6uq
— James Seyffart (@JSeyff) May 20, 2025
Litecoin ETF May Lead the Pack, Says Bloomberg Analyst
While several altcoin ETF proposals are currently pending, Seyffart believes Litecoin (LTC) may have the highest approval chances among them. “Litecoin is one that has a higher likelihood vs others of getting approved first,” he said.
Although some XRP and other ETF decisions have imminent deadlines, Seyffart predicts that any early approvals would likely emerge no sooner than late June or early July. More realistically, he expects approvals to occur in early Q4 2025.
Post-Gensler SEC Seen as More Crypto-Friendly
The wave of ETF filings came in the aftermath of SEC Chair Gary Gensler’s resignation in January, an event that many industry participants viewed as a turning point. Under Gensler’s tenure, the SEC launched over 100 crypto-related enforcement actions. Since his departure, several firms—including Gemini and Cumberland DRW—have seen their cases dismissed, reinforcing the view of a more lenient regulatory environment.
Upcoming deadlines for crypto ETFs include decisions on Grayscale and 21Shares’ Polkadot ETFs in June. As the SEC continues to evaluate a surge of crypto-related proposals, the industry awaits signals of a more decisive shift in regulatory posture.
The SEC’s delays on Ether staking, XRP, and Solana ETFs are procedural, not political. While Litecoin may be the first altcoin ETF to gain approval, analysts don’t expect significant movement until Q3 or Q4.
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