Analyst: The US SEC's decision on ETFs for altcoins such as SOL, XRP, etc., is expected to continue until the end of 2025

According to reports, Bloomberg analyst James Seyffart outlined the potential timeline for approval of Solana (SOL), XRP, Litecoin (LTC) and Hedera (HBAR) ETFs. As discussions with U.S. regulators deepen, Seyffart predicts that decisions on these altcoin ETFs could extend until the end of 2025, depending on various factors. Due to previous decisions made by the U.S. Securities and Exchange Commission (SEC), the current environment for altcoin ETFs remains somewhat unclear. Bitcoin and Ethereum ETF approvals were primarily due to their connection with futures markets regulated by the Chicago Mercantile Exchange (CME). However, many altcoins including SOL and XRP do not have a regulated futures market which may slow down the process of ETF approval.

Seyffart stated: "Due to a lack of sizable regulated markets, SEC has always rejected applications for altcoin ETFs. The new leadership at SEC in 2025 might change these guidelines but it's still unclear when they will be approved." Seyffart also pointed out that although companies like WisdomTree and 21Shares recently applied for an XRP ETF, current regulations do not allow them to list it. Some issues that need resolving before such products can be listed include market manipulation as well as custody and compliance issues.