SEC's Cautious Stance: Unpacking the Delays in Altcoin ETF Approvals

Investment firms await SEC decisions on altcoin ETF applications as regulatory delays continue through 2025, affecting major cryptocurrencies including Solana, Cardano, and Litecoin.

The Securities and Exchange Commission maintains a cautious approach to approving cryptocurrency ETFs beyond Bitcoin and Ethereum, with over 90 applications from major asset managers like BlackRock, Franklin Templeton, and Grayscale facing extended review periods. Key concerns include asset custody security, proof-of-stake staking mechanics, fraud prevention, and comprehensive investor protection measures.

• Major asset managers including BlackRock, Fidelity, and Franklin Templeton have applications pending for Solana, Cardano, and Litecoin ETFs with deadlines extending into late 2025
• The SEC focuses on custody arrangements, staking reward structures, market surveillance agreements, and anti-manipulation safeguards before approving new cryptocurrency investment products
• Industry experts assign high approval probabilities for select altcoin ETFs, anticipating potential coordinated approvals that could trigger significant institutional capital inflows
• A proposed generic listing framework could streamline future cryptocurrency ETF approvals, potentially reducing review times from months to weeks once established