The U.S. Securities and Exchange Commission (SEC) has again postponed decisions on several cryptocurrency spot exchange-traded funds (ETFs)

The U.S. Securities and Exchange Commission (SEC) has again postponed decisions on several cryptocurrency spot exchange-traded funds (ETFs)

The U.S. Securities and Exchange Commission (SEC) has once again postponed decisions on several cryptocurrency spot exchange-traded funds (ETFs), further delaying the arrival of these products for investors.

The SEC explained that it needs more time to assess the proposed ETFs and their potential impact on the market. While this news may seem disappointing, analysts remain optimistic that these products will eventually receive regulatory approval.

SEC Extends Review Period for Multiple Altcoin ETFs

In its latest move, the SEC has decided to extend the review process for multiple altcoin spot ETFs. Among the affected ETFs are those filed by VanEck, Canary Capital, Grayscale, Bitwise, and 21Shares.

Specifically, the regulator is postponing decisions on VanEck’s Spot Solana ETF, Canary’s Spot Litecoin and XRP ETFs, and Grayscale’s Spot Dogecoin and XRP ETFs. The SEC is also delaying decisions on ETFs that feature staking options for Ethereum and in-kind creation and redemption mechanisms for Bitcoin and Ethereum ETFs.

The SEC has pushed back the deadlines for Grayscale’s Spot XRP ETF and Cboe BZX’s Spot Solana ETF to May. Additionally, the deadline for the Canary Spot ADA ETF has been moved to May 29. The agency stated that it requires a longer period of time to process the proposed rule changes and any issues raised by these filings.

Analysts Expect More Time Needed Despite Delays

Despite the postponements, industry experts like Bloomberg ETF analyst James Seyffart believe that this is part of the SEC’s standard process.

"Not surprising at all. SEC routinely postpones and we're used to it," said Seyffart.

He added that this delay does not indicate a lower chance of approval. According to Seyffart, the final deadlines for these ETFs extend until October, giving the agency ample time for further evaluation.

Similarly, analyst Eric Balchunas noted that delays were anticipated across the board, including for Ethereum ETFs featuring staking capabilities.

"Everyone's getting an extension. It's no secret the SEC has been slammed with filings and they're unable to keep up with the pace despite working diligently," explained Balchunas.

While acknowledging the increased regulatory scrutiny, Balchunas maintains that the likelihood of approval remains high.

The SEC's decision to postpone comes as the U.S. government is actively engaging with the cryptocurrency industry. Earlier this year, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

This move, following recommendations from the bipartisan Congressional task force, signifies a shift in the administration's stance towards digital assets. However, the SEC appears to be moving more slowly with altcoin ETF approvals compared to Bitcoin ETFs.