On May 13, some cold water was thrown on crypto enthusiasts by the US Securities and Exchange Commission (SEC), resisting several major crypto-linked exchange-traded fund (ETF) applications. Two of the big players in the space, Grayscale and BlackRock, had their spot ETF proposals for Solana (SOL), Litecoin (LTC), and Bitcoin (BTC) put on hold, taking the SEC's review period and any potential approvals to the fourth quarter of 2025.
Grayscale’s spot ETFs for Solana and Litecoin have now been pushed to new filing deadlines of August 11 and October 10, respectively. Meanwhile, BlackRock’s request to enable in-kind redemptions for its approved spot Bitcoin ETF has been delayed too, but with no new deadline, this one’s more about technical mechanics than initial approval.
The Waiting Game - SEC's 'Routine' Delays
The SEC’s decision delays align with the broader pattern of delays we've been seeing lately. There are more than 70 crypto ETF proposals hanging in the balance, each at different stages of review. This delay is nothing new, according to Bloomberg ETF analysts James Seyffart and Eric Balchunas, who called the current round of delays “routine.” Seyffart even joked that the delay was “expected,” with most of the affected products not facing final deadlines until October at the earliest.
But why the hold-up? Well, it seems like the SEC is playing it cautious. Balchunas pointed out that the SEC is unlikely to issue any substantial approvals until its newly confirmed Chair, Paul Atkins, has wrapped up some internal meetings and strategy sessions with staff. Looks like the SEC is taking its time to figure out exactly how it plans to approach the crypto ETF market.
What’s Next for Crypto ETFs?
The SEC’s decision-making process for crypto ETFs follows a multi-stage statutory timeline. After filing proposed rule changes in the Federal Register, the agency typically reviews proposals at intervals of 45, 90, 180, and 240 days, offering plenty of opportunities for delays before any final decisions are made. And it’s no surprise that the SEC is extending its reviews to the full statutory limits, which means no clarity on the final outcome until late in the third quarter at the earliest.
For now, the SEC's actions are keeping everyone, applicants and investors alike, in a state of uncertainty, waiting for that elusive green light on crypto-linked investment products.
HODL Team
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