SEC Delays on XRP and Solana ETFs: What’s Next for Crypto Markets?

2025-06-18

The United States Securities and Exchange Commission (SEC) has once again chosen to delay its decision on Franklin Templeton’s spot ETFs for XRP and Solana. These applications, aimed at introducing more altcoin-backed ETFs to the market, have been under regulatory review for months.

The SEC is now calling for public commentary before reaching a final conclusion. This development leaves crypto investors, particularly those interested in alternative coins, uncertain about what lies ahead.

SEC’s Position and What the Delay Means

The SEC’s decision to postpone is consistent with its approach to previous altcoin ETF proposals. While spot Bitcoin and Ethereum ETFs received approval in 2024, the agency has shown greater reluctance toward greenlighting similar products for other cryptocurrencies.

According to Bloomberg analyst James Seyffart, the delay is not unexpected, given the trend of extended reviews applied to altcoin-linked ETF submissions.

Interestingly, there have been discussions between the SEC and fund managers aiming to launch a spot Solana ETF. Such interactions are seen by some as a positive sign, possibly hinting that the agency is taking these proposals seriously.

Yet, this should not be mistaken for imminent approval. Seyffart himself notes that while approvals might come within a month, they could also be postponed until the final decision deadline in October.

The request for public input signals that the SEC is still undecided. It may be weighing factors such as market integrity, investor protection, and institutional demand. Delays in decisions like these can affect market sentiment and impact investor confidence, particularly at a time when expectations for a so-called "altseason" are rising.

Without regulatory clarity, many investors remain on the sidelines, waiting for signs of commitment from U.S. authorities.

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Market Impact and Institutional Outlook

The crypto market tends to respond strongly to regulatory news, and this delay is no exception. Following the successful launch of spot Bitcoin and Ethereum ETFs, many investors anticipated a rotation of capital into altcoins. Products based on Solana and XRP were expected to be the next catalysts, potentially ushering in a fresh wave of institutional participation.

However, with these ETFs now in regulatory limbo, that momentum has stalled. This affects not only traders seeking gains from short-term volatility but also long-term investors hoping for broader institutional adoption.

ETFs are considered key vehicles for traditional investors to access crypto in a compliant and familiar format. Without them, altcoin exposure remains limited, especially in heavily regulated markets like the U.S.

Despite the delay, international examples provide some hope. Canada has already approved a spot Solana ETF, suggesting that similar products are feasible in mature financial markets. Additionally, the demand for Solana among institutional players is growing. Firms are increasingly building structured strategies around SOL, indicating serious interest from professional investors.

Yet, even as optimism builds, it is essential to remain grounded. Approval of Bitcoin and Ethereum ETFs came only after years of legal battles, policy reviews, and extensive lobbying. The SEC’s cautious stance toward altcoins may be rooted in concerns about their decentralisation, liquidity, or legal classification. This means any expectation of a quick approval should be tempered with realism.

Transparency Concerns and a Note of Caution

While ETF proposals for Solana and XRP are generating excitement, there are valid reasons to proceed with caution. Investors should not overlook the fact that key information, including whitepapers or technical documentation for some of these offerings, remains inaccessible or incomplete on official websites. This raises questions about transparency and readiness.

Investing in products that lack fundamental disclosures can carry significant risk. The structure of the ETF, its custodial arrangements, and the regulatory status of the underlying assets must all be clearly understood.

At present, not all of these boxes appear to be ticked, especially in the case of the Solana ETF. As a result, despite the appeal, these funds may not yet be suitable for risk-averse investors.

Moreover, XRP and Solana themselves have been subjects of regulatory scrutiny in the past. XRP, for example, was at the centre of a prolonged legal dispute between Ripple Labs and the SEC.

Solana has faced its own criticisms regarding network reliability and centralisation. These issues may influence the SEC’s ultimate decision and could pose risks to the long-term viability of any related investment products.

Therefore, while the crypto community continues to anticipate approval, it's critical to remain alert to the gaps in documentation and regulatory context. Investors should be aware that altcoin ETFs are still in a grey area, and entering such positions without complete information may lead to unexpected outcomes. Caution and due diligence are strongly advised.

Conclusion

The SEC’s latest delay on XRP and Solana ETFs has introduced further uncertainty into an already volatile market. While there are positive signals, including ongoing discussions with ETF applicants and international precedents, regulatory clarity is still lacking. Investors should be careful not to get swept up in speculation without first verifying facts and assessing the full picture. For now, the path to approval remains open—but far from assured.

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