The SEC has postponed two of Grayscale’s ETF applications, particularly two related to Solana and Litecoin. This latest announcement will be added to CommissiA recent series of decisions to push back some Altcoin ETFs from various asset managers.
Several prominent ETF analysts also declined to publicly comment on the delay. In the long term, SEC approval remains highly likely.
SEC continues to delay AltCoin ETFs
The SEC has been hit by a flood of ETF proposals as it has come under new management under the Trump administration. Professional analysts and community enthusiasts are bullish about the odds of approval, but it’s not happening yet.
Nevertheless, the response has been muted when the committee postponed the application of Grayscale Solana and Litecoin ETF.
“The litigation agency has not shown that the committee has reached a conclusion on any of the relevant issues. Rather, the committee is encouraging interest holders to provide comments on changes to the proposed rules,” the SEC argued in its delayed application.
In fact, the committee has postponed several ETF applications over the past few weeks. This coincided with analysts’ predictions as the SEC delayed Canary Capital’s Litecoin ETF.
Previously, analysts argued that Litecoin ETFs are more likely than other Altcoin products, but have not commented on today’s event.
The market is also predicting the Solana ETF, but progress has not yet been made. At this point, the market is beginning to price with these delays.
Last week, Litecoin came together after the SEC delayed filing the ETF, violating bearish assumptions. So far neither of the underlying tokens has seen much price movement since the committee’s announcement.
Still, there are many reasons to be bullish about approval in the long term. Less than a week later, the SEC met with BlackRock representatives to discuss ETF regulations.
These talks included high-level associates from the world’s largest Bitcoin ETF publisher. Principals and directors of both digital assets and regulatory practices were present.
In other words, the SEC is slowing things down, but it will probably end up ending up some of these AltCoin ETFs. The committee is seeking industry feedback on long-term impacts, but has yet to provide any externally negative indications.
Of course, the industry wants prompt SEC approval for all these ETF submissions. However, as recent rate cuts clearly show, this is not necessary to maintain profitability.
The crypto market currently has many strong fundamentals. This will benefit these assets, even if the committee has been limping for months.
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