SEC ETF freeze hits Solana, XRP, and Bitcoin products: What happens next?

Key takeaways

The U.S. SEC has delayed decisions on several major crypto ETF proposals, including those tied to Bitcoin, Ethereum, Solana, and XRP. The move is a sign of caution when it comes to altcoins.

The U.S. SEC is taking more time to decide on several high-profile crypto ETFs.

Yesterday, the agency delayed decisions on products tied to Bitcoin [BTC], Ethereum [ETH], Solana [SOL], and Ripple [XRP], including one branded by Truth Social.

While delays like this aren’t unusual, the growing number of crypto ETF filings shows just how quickly the market is evolving, and how regulators are trying to keep up.

Here’s what happened

The SEC is hitting pause on three major crypto ETF applications.

These include Truth Social’s Bitcoin and Ethereum ETF, new Solana products from 21Shares and Bitwise, and a proposed XRP trust from 21Shares.

The agency has now set new deadlines: 8th of October for the Truth Social ETF, 16th of October for the Solana ETFs, and 19th of October for the XRP trust.

Source: sec.gov

These ETFs would allow investors to gain direct exposure to crypto assets like Bitcoin, Ether, Solana, and XRP without actually holding them.

While Truth Social’s brand adds political flavor to the mix, the ETF structure is standard.

It is generally agreed upon that regulators often take the maximum time allowed to evaluate such proposals. Case in point, here’s an X post from crypto and ETF expert James Seyffart,

The SEC *typically* takes the full time to respond to a 19b-4 filing. Almost all of these filings have final due dates in October. Early decisions would the action that’s out of the norm. No matter how “Crypto-friendly” this SEC is…

Why the SEC ETF delay matters

The SEC has been extending deadlines on a wave of crypto ETF applications all year.

Back in March, it delayed decisions on products tied to XRP, Litecoin [LTC], and Dogecoin [DOGE].

Meanwhile, Solana and XRP ETFs are still seeking that first-ever approval. These delays are an obvious sign of how cautious the SEC remains, especially when it comes to altcoins.

On the other hand, they also show growing demand for more crypto investment products in regulated markets.

The bigger picture

ETF delays hold weight for the broader crypto market.

October could bring approvals, or another round of waiting. Right now, the U.S. has several spot Bitcoin and Ethereum ETFs, led by BlackRock’s iShares Bitcoin Trust, which holds over $87 billion in assets.

Source: CoinMarketCap

If Solana or XRP ETFs get the green light, it could expand investor access and potentially drive up token demand.

But for now, all we can do is wait.