SEC Delays XRP, Litecoin, and Ethereum ETFs Again—What’s Behind the Hold-Up in 2025?
- Why Is the SEC Stalling Crypto ETF Approvals in 2025?
- October 2025: Make-or-Break Month for Crypto ETFs
- Political Football or Prudent Regulation?
- The Bigger Picture: A $321M Game of Chicken
- Q&A: Your ETF Delay Questions Answered
In a move that’s frustrating crypto investors, the U.S. Securities and Exchange Commission (SEC) has once again postponed decisions on spot ETFs for XRP, Litecoin, Ethereum, and even Donald Trump’s Truth Social platform. The delays push final rulings to October 2025, despite mounting pressure from Wall Street giants like BlackRock and Fidelity. Here’s why the SEC is hitting pause—and what it means for the $3.7B crypto ETF boom.
Why Is the SEC Stalling Crypto ETF Approvals in 2025?
The SEC’s latest delay, announced on August 20, 2025, cites the need for "additional time to review rule-change proposals" for ETFs tied to XRP, Litecoin, Ethereum, and Truth Social’s Bitcoin-Ethereum hybrid fund. This follows a pattern: the agency has used nearly all allotted timeframes for 19b-4 filings since bitcoin ETFs were greenlit in early 2024. Industry analysts like James Seyffart of Bloomberg Intelligence note this is standard SEC procedure, but with a twist—political headwinds may be at play. Caroline Ciccone of watchdog group Accountable.US openly questions whether approving Trump-linked Truth Social’s ETF could create conflicts of interest, stating: "Americans will wonder if this decision serves the country or the president’s business."
October 2025: Make-or-Break Month for Crypto ETFs
All eyes are now on three key deadlines:
- October 8: Final decision deadline for Truth Social’s ETF
- October 15: XRP and Litecoin ETF verdicts
- October 31: Ethereum ETF ruling
The delays come despite roaring success for existing crypto ETFs. BlackRock’s ETHA fund attracted $519.7M in a single day this July, while ethereum ETF inflows hit $3.7B in eight days—data from TradingView shows ETH prices surged 18% during that period. "The market’s appetite won’t wait forever," remarked a BTCC analyst, pointing to 877,106 ETH withdrawn from staking as investors pivot to ETFs.
Political Football or Prudent Regulation?
Sources close to the SEC suggest internal divisions over "Trump-compatible" appointees may be slowing decisions. Truth Social’s ETF—backed by MAGA-aligned investors—faces particular scrutiny. Meanwhile, established players like 21Shares and Grayscale await rulings on funds that could unlock billions. Coinmarketcap data reveals XRP and Litecoin trading volumes spiked 40% ahead of expected approvals, indicating pent-up demand.
The Bigger Picture: A $321M Game of Chicken
With BlackRock’s BTCS ETF now holding 70,140 ETH ($321M), the stakes are astronomical. The SEC’s caution contrasts sharply with global trends—Hong Kong approved spot crypto ETFs in April 2025, and Europe’s markets regulator fast-tracked similar products. "We’re seeing regulatory arbitrage," noted a BTCC strategist. "Capital flows to jurisdictions moving fastest."
This article does not constitute investment advice.
Q&A: Your ETF Delay Questions Answered
Why does the SEC keep postponing crypto ETF decisions?
The SEC routinely uses the full 240-day review period for 19b-4 filings. Political factors and the complexity of newer assets like XRP may extend timelines.
How are existing Bitcoin and Ethereum ETFs performing?
Exceptionally well. Ethereum ETFs saw $3.7B inflows in July 2025 alone, per TradingView data.
Could Truth Social’s political ties affect its ETF approval?
Watchdogs argue it might. The SEC denies political considerations influence rulings.
