SEC pumps brakes on altcoin ETFs, institutional interest remains

Altcoins begin their slow recovery amidst Bitcoin’s 5% rally on Friday. The US financial regulator delayed its decisions on spot altcoin Exchange Traded Fund (ETF) applications, raising concerns among traders. 

Analysts at K33 Research state that filings for spot altcoin ETFs from asset managers indicate there is interest and demand for alternative investments, other than Bitcoin, among clients. This is a positive sign for the financial product and the altcoin sector. 

Litecoin, XRP and Solana ETF decisions face delays

K33 Research report titled, “This week in crypto,” published on March 14 observes that the U.S. financial regulator pumped the brakes on altcoin ETF applications, but interest in the investment product continues to grow. 

The SEC’s postponed decision is not the end of the road for the ETF applicants. The report suggests that clients of asset management giants who filed for the altcoin ETFs are likely interested in the investment product, meaning delays do not negatively impact the likelihood of approval. 

SEC’s standard procedure accommodates these delays and analysts explain that there is consensus, while the agency waits for Trump’s nominee for Chair to be confirmed. Following the financial procedures and disclosure of the potential conflicts of interest, Paul Atkins’ candidature would move forward to a Senate confirmation hearing. 

Franklin Templeton, a giant with over $1.5 trillion assets under management filed applications for both Spot XRP and Solana ETFs this week, a total of 60 ETF proposals are waiting SEC greenlight. 

James Seyffart, Senior ETF analyst at Bloomberg assuages crypto traders’ concern and comments on the altcoin ETFs and their approval status in a recent conversation with Tony Edwards on the Thinking Crypto podcast.

(This story was corrected on March 17 at 14:30 GMT to say that the SEC pumped the brakes on altcoin ETF applications, not breaks.)