XRP, Litecoin and Ethereum ETFs Face Delays as SEC Drags Its Feet

End of the promised cleanup? One might have thought the post-Gensler era would speed things up. That the arrival of more “Trump-compatible” profiles at the head of the SEC would unlock a wave of crypto ETF approvals. But that is not the case. Not even the ETF of Trump’s platform, Truth Social, will escape the regulatory routine. October will be decisive, but for now, the agency is playing for time. Investors, meanwhile, are losing patience.

the SEC slows ETFs despite the change of climate

We almost thought it was in the bag. The Truth Social ETF, backed by bitcoin and Ethereum, had all the advantages. Institutional support, strong political brand, and favorable regulatory context since the approval of other crypto ETFs at the start of 2024. Yet, the SEC’s axe fell: another delay until October 8.

In the official document, the SEC justifies itself: “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein“.

Behind the scenes, some mention political resistance. Caroline Ciccone, president of Accountable.US, does not mince words:

If the SEC votes to approve the launch, it will put doubts into the minds of Americans and potentially undermine confidence in the markets and the agency itself.

Autumn will be crypto, but not necessarily for everyone

The SEC also delays XRP, Litecoin ETFs, Solana and even Dogecoin. Most projects see their deadlines pushed back to mid or late October. An almost systematic mechanism, according to James Seyffart from Bloomberg, the SEC generally uses the full time allowed to respond to a 19b-4 type request. An early decision would be exceptional.

Yet, the pressure is mounting. BlackRock, Fidelity, Grayscale… All the crypto management giants await approvals. The competition for spot ETFs is played out in billions.

A few figures to measure the tension:

• $3.7 billion injected in Ethereum ETFs in 8 days in July;
• BlackRock’s ETHA fund received +$519.7 million in one day;
• ETH staking withdrawals reached 877,106 ETH, a sign of profit-taking;
• The BTCS fund now holds 70,140 ETH, worth $321 million.

Despite these delays in a chain, the success of already approved crypto ETFs remains spectacular. In recent days, Bitcoin and Ethereum trackers have recorded impressive momentum. The Ethereum ETF, for example, had eight record days, accumulating $3.7 billion of inflows alone. Enough to remind the SEC that the market’s appetite will not wait forever.