SEC Stalls XRP, Litecoin, and Ethereum ETF Approvals—Crypto Markets Left Waiting

Regulatory gridlock strikes again as the SEC delays key cryptocurrency ETF decisions, leaving investors in limbo.

XRP, Litecoin, and Ethereum ETFs Face Extended Delays

The Securities and Exchange Commission hits pause on three major crypto ETF applications—kicking the can down the road with trademark bureaucratic efficiency. No timelines, no explanations—just the usual regulatory fog.

Market Impact and Investor Sentiment

Traders brace for extended uncertainty as institutional adoption gets stuck in regulatory quicksand. The delay reinforces Wall Street's favorite narrative: innovation moves at light speed while regulators still use dial-up.

Another classic case of financial oversight being about 20% sight and 80% over-the-shoulder.

In brief

• The SEC postpones its decision on XRP, Litecoin, Ethereum, and Truth Social ETFs until October.
• Truth Social, Trump’s platform, targets a Bitcoin-Ethereum ETF still blocked by regulation.
• Several major players like 21Shares, Grayscale, and CoinShares are also affected by these delays.
• These delays occur despite the impressive success of Bitcoin and Ether ETFs already on the market.

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.

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