The US Securities and Exchange Commission (SEC) has recently announced a delay in its decision regarding a proposed spot Solana exchange-traded fund (ETF), with the cryptocurrency community eagerly awaiting the deadlines for Polkadot and XRP-based ETFs set for June.

The SEC has extended the timeline for reviewing Grayscale’s spot Solana (SOL) Trust ETF to October 2025, as per a filing made on May 13 by the regulatory body. This decision follows a similar delay in the ruling on Canary Capital’s Litecoin (LTC) ETF, noted by Bloomberg Intelligence analyst James Seyffart in a May 5 post.

Spot ETFs are considered crucial in boosting liquidity and institutional acceptance of digital assets. For instance, the launch of US spot Bitcoin ETFs contributed significantly to Bitcoin's price momentum, aiding it in surpassing the $50,000 mark in February 2024, just a month after the ETFs were introduced.

While the potential inflows from a Solana ETF may not match those of Bitcoin ETFs, it could significantly enhance Solana’s institutional adoption in the long run by providing investors with a regulated investment avenue. Ryan Lee, chief analyst at Bitget Research, pointed out that such an ETF could still attract billions of dollars in capital.

Despite the SEC’s delay, most investors remain optimistic about the approval of a SOL ETF before the end of 2025. Data from Polymarket, a decentralized betting platform, indicates an 82% chance of approval for a SOL ETF and an 80% chance for a Litecoin ETF before the year concludes.

Looking ahead, the cryptocurrency industry is now turning its attention to upcoming SEC decisions in June. The SEC is expected to rule on Grayscale’s Polkadot (DOT) ETF by June 11 and 21Shares’ Polkadot ETF on June 24. Additionally, on June 17, decisions are anticipated for Franklin Templeton’s spot XRP (XRP) ETF and Bitwise’s spot Dogecoin (DOGE) ETF.

However, these decisions could also face delays, as the SEC typically utilizes the full 240-day review period when evaluating crypto-related financial products. This was evident in the handling of Bitcoin and Ether (ETH) ETF applications in 2023 and 2024.

Overall, the crypto community is closely monitoring these developments, as the approval of these ETFs could have significant implications for the market, potentially opening doors for increased institutional participation and liquidity in the digital asset

Source: https://cointelegraph.com/news/sol-ltc-etf-delayed-polkadot-xrp-etfs-june-deadline?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound