SEC Hits Pause on Crypto ETFs – XRP, SOL, and DOGE Need to Wait

The regulator requires more time to review applications, some of which may need adjustments.

So far, Bitcoin and Ethereum are the only cryptocurrencies that have received SEC approval. Bitcoin ETFs were approved on January 10, 2024, marking a major milestone in crypto history. A few months later, in May 2024, Ethereum ETFs were launched, expanding institutional access to digital assets.

SOL, XRP, DOGE, and LTC ETFs Awaiting SEC Approval

Grayscale’s XRP and DOGE ETFs, Cboe BZX Exchange’s spot Solana ETF, and Canary’s Litecoin ETF are among the altcoin ETF filings currently on hold. The SEC is expected to announce its decisions on most of these applications in May 2025.

On March 12, 2025, Franklin Templeton—one of the world’s largest asset managers — filed for XRP and SOL ETFs, further signaling institutional interest in expanding crypto investment options.

If approved, these ETFs will allow investors to gain exposure to these cryptocurrencies through regulated financial products—without directly owning the assets. This could drive more institutional money into crypto and accelerate mainstream adoption.

Despite strong demand, the SEC has reasons for delaying its decisions. Following Donald Trump’s presidential victory, the Commission underwent structural changes. Gary Gensler stepped down as Chair, while Trump’s nominee, Paul Atkins, is still awaiting confirmation.

Bloomberg ETF analyst James Seyffart addressed community concerns, noting that delays are a standard part of SEC approval procedures. He reiterated that while the chances of approval remain high, the final deadlines for these ETFs extend until October 2025.

It remains unclear which altcoin will be the next to secure an ETF approval. Among the top contenders is Hedera (HBAR), as the SEC has begun reviewing Nasdaq’s request to list and trade shares of a Grayscale Hedera Trust (HBAR).

While the SEC has not explicitly approved HBAR, its decision to review the application signals recognition of HBAR as a significant asset in the digital space.

Altcoin ETFs Could Shake Up Crypto Investing

The approval of Bitcoin and Ethereum ETFs has already had a massive impact on institutional adoption, and the potential launch of altcoin ETFs could shake things up even further. Historically, Bitcoin has maintained dominance in the crypto market, largely because it was the first mover and has enjoyed the most institutional backing. 

However, if XRP, Solana, Dogecoin, and Litecoin ETFs are approved, it could lead to a shift in investor capital away from Bitcoin as more diversified crypto investment options become available.

This doesn’t mean Bitcoin’s dominance is at risk, but it does suggest that institutions might start spreading their bets across a wider range of assets. Instead of just piling into Bitcoin and Ethereum, investors may take a closer look at which altcoins offer real-world utility and strong performance. 

More competition could lead to a more balanced crypto market, where altcoins compete for institutional attention and liquidity.