Bloomberg ETF analyst James Seyffart believes that, among the various cryptocurrency fund applications currently under review, a Litecoin ETF is the most likely to receive initial approval from the SEC.
The U.S. Securities and Exchange Commission delayed its decision on Bitwise’s proposal to incorporate staking into its Ether exchange-traded fund, along with Grayscale’s application for an XRP ETF—a move analysts had anticipated.
On May 20, the SEC announced a 45-day extension to review Bitwise’s application, allowing more time to ‘consider the proposed rule change and the issues raised therein.’ The agency faced a May 22 deadline to make a decision or issue a deferral.
The agency also announced delays in deciding on Grayscale’s XRP-tracking ETF and Bitwise’s Solana-tracking fund, stating that it is soliciting public comments and initiating formal proceedings to further analyze the proposals and ensure they meet regulatory requirements.
Bloomberg ETF analyst James Seyffart stated on X that he expected both delays, noting that the SEC typically uses the entire allotted period to respond to a 19b-4 filing.
Seyffart added that ‘almost all of these filings have final due dates in October’ and said that issuing a decision before that timeline would be ‘out of the norm.’
He stated that, regardless of how favorable the current SEC may seem toward crypto, ‘there is no conspiracy in this matter.’
Seyffart mentioned that he also anticipates delays for other spot cryptocurrency ETF proposals, including expected postponements by the SEC on Litecoin (LTC) ETFs.
However, it was added by him that “Litecoin is one that possesses a greater likelihood of being approved ahead of the others.”
Seyffart stated that ‘a number of XRP ETPs have upcoming dates within the next few days’ and noted that if the SEC approves any of these assets early, decisions likely wouldn’t come before late June or early July, with the early fourth quarter being a more probable timeframe.
SEC Faces Surge in Crypto ETF Applications
A number of other cryptocurrency ETF applications are nearing their respective SEC deadlines in June. According to an SEC filing, the agency must decide on Grayscale’s Polkadot (DOT) tracking ETF by June 11, while it plans to review 21Shares’ Polkadot ETF by June 24.
The SEC received a wave of altcoin ETF filings after Donald Trump’s election in November and the subsequent resignation of former SEC Chair Gary Gensler.
The industry viewed Gensler’s tenure at the SEC—from 2021 until his resignation on January 20—as a period marked by an assertive regulatory approach toward cryptocurrency, during which the agency initiated approximately 100 crypto-related enforcement actions.
Since Gensler’s departure, observers have viewed the SEC as significantly more favorable toward the cryptocurrency sector, as the agency has dismissed legal actions against several firms. Among them, crypto exchange Gemini had its case dropped on February 26, and crypto trading firm Cumberland DRW saw its case dismissed on March 4.
