🤔 SEC Hits Pause Button on XRP and Ether ETFs - Experts Not Surprised
The U.S. Securities and Exchange Commission (SEC) announced it would delay its decision on multiple cryptocurrency ETFs, including the eagerly awaited Ether staking ETF by Bitwise and Grayscale's XRP-based ETF. While this might seem like a setback, industry insiders were not surprised by the move.
🔍 Understanding the Delay – What Happened?
On May 20, the SEC declared it needed an additional 45 days before making a final decision on Bitwise’s Ether staking ETF proposal, pointing out that additional evaluation of the rule change and related concerns was required. Likewise, Grayscale's application to launch an XRP-tracking ETF and Bitwise’s Solana-tracking fund also got pushed back, allowing more time for public comments and further analysis of these proposed ETFs to confirm they fully align with regulatory standards.
🗓️ Why Analysts Expected This Outcome
According to Bloomberg's ETF expert James Seyffart, these delays are far from extraordinary. He noted that the SEC generally uses all available time to assess intricate filings like these. "Almost all filings have final due dates in October," Seyffart explained, adding that an earlier decision by the SEC would actually break from tradition.
We note this paints a realistic picture, there's no hidden agenda, just a thorough regulatory approach to cautious investing.
🚀 Could Litecoin ETFs See Approval First?
Interestingly, Seyffart highlighted Litecoin (LTC) ETFs as a more promising candidate for first approvals, suggesting Litecoin holds a "higher likelihood" compared to other crypto-based funds. This could potentially make Litecoin ETFs the first to breeze past regulatory hurdles, offering a noteworthy opportunity to investors cautiously optimistic about crypto-based ETFs.
"If we're going to see early approvals from the SEC on crypto assets, don't expect anything sooner than late June or early July, and even that's optimistic. Realistically, we're looking towards early Q4," Seyffart said.
📍What to Look For Next
- The SEC will make crucial decisions regarding Grayscale and 21Shares’ Polkadot ETF filings in June.
So, while the cautious approach by regulators can be frustrating, it's clear there's genuine movement toward crypto adoption in mainstream financial products. We encourage investors to stay informed and patient, as brighter news may emerge by the end of the year! 🌟
