The U.S. SEC has withdrawn delay notices for multiple crypto ETF applications on U.S. exchanges, indicating a shift in policy towards potential approval and listing.
This action could accelerate progress in the crypto ETF market, impacting asset flows and valuations of Solana, XRP, Hedera, and others as institutional investors prepare for potential launches.
SEC's Withdrawal of Delays Affects SOL, XRP, LTC ETFs
The U.S. SEC's withdrawal involves applications for crypto spot ETFs, including those for Solana, XRP, and Litecoin. The shift follows the approval of generic listing standards for crypto ETFs, paving the way for accelerated decisions slated for completion by October 2025.
Chairman Atkins of the SEC, appointed in 2025, highlighted a "fit-for-purpose regulatory framework" for crypto markets. Institutional players like Bitwise, VanEck, and Fidelity have heavily invested in ETF applications impacted by this decision.
Market Anticipates Uplift from Potential ETF Approvals
Market participants see potential uplift in affected assets due to expected ETF approvals. Lead analyst Nate Geraci stated this could be an "enormous next few weeks" for crypto ETFs, with critical deadlines approaching.
The financial industry anticipates a boost in market efficiency and liquidity with the SEC allowing in-kind creation and redemption for these ETFs, streamlining processes in line with commodity/equity ETFs.
SEC Approval History Suggests Liquidity Boost
Historically, regulatory approvals have led to increased liquidity for included assets, as seen with Bitcoin and Ether ETFs. Chairman Atkins' regime marks a shift, allowing more efficient ETF structures that promise similar outcomes for SOL, XRP, and LTC.
“It's a new day at the SEC, and a key priority of my chairmanship is developing a fit‑for‑purpose regulatory framework for cryptoasset markets.” — Chairman Atkins, SEC
Experts predict increased market activity around these assets, aligning with past trends where efficient ETF structures enhanced market transparency and accessibility. The SEC's actions suggest upcoming approvals may result in significant market capitalization increments.