XRP ETF, Other Altcoin ETFs Approval Timeline Revealed! – CryptoNewsZ

Renowned Bloomberg ETF analyst, James Seyffart, recently provided insights on the potential approval process for crypto exchange-traded funds (ETFs), including the XRP ETF and others like Solana, Litecoin, and Hedera. Seyffart highlighted the regulatory hurdles and complexities that these applications face, suggesting that approval decisions might not come until late 2025.

Seyffart explained that while Bitcoin and Ethereum ETF approvals were possible due to regulated futures markets, the lack of such markets for altcoins like SOL and XRP poses a significant obstacle for their ETF applications. Changes in the U.S. Securities and Exchange Commission (SEC) leadership could potentially influence the approval timeline, with a more crypto-friendly stance possible under new leadership in 2025. However, Seyffart cautioned that the exact approval timeframes remain uncertain, even with leadership changes.

Despite recent applications by firms like WisdomTree and 21Shares for XRP ETFs, regulatory barriers related to market manipulation, custody, and compliance continue to impede the launch of these ETFs. Seyffart mentioned that potential advancements in ETF structures, such as staking for altcoins like Ethereum, SOL, and XRP, could play a significant role in future offerings, especially if a more crypto-friendly SEC administration takes charge.

The filing processes for ETFs, including the 19b-4 rule filings and S-1 prospectuses, have led to delays in approval decisions. While Bitcoin and Ethereum ETFs have progressed through the 19b-4 process, most altcoin ETFs are yet to follow suit. Seyffart mentioned that even if altcoin ETF filings begin the 19b-4 process soon, decisions might not be made until late 2025. The pace of approvals could be influenced by leadership changes at the SEC, and a pro-crypto administration might expedite the process, although the extent of such acceleration is uncertain.

Seyffart also discussed the potential for multi-asset index ETFs that include altcoins, like Grayscale’s GDLC and Bitwise’s Crypto 10 Index, to face fewer regulatory hurdles as their portfolios are primarily composed of Bitcoin and Ethereum. The SEC might be more amenable to smaller altcoin allocations within index ETFs, as long as compliant assets make up the majority of the fund’s holdings.

In conclusion, Seyffart expressed cautious optimism about the future of altcoin ETFs. While decisions on SOL, LTC, HBAR, and XRP ETFs could begin in 2025, the pace will depend on leadership changes and shifts in the regulatory approach.