The U.S. Securities and Exchange Commission (SEC) has postponed its decision on CoinShares’ proposed spot ETFs for XRP and Litecoin, extending the review period and soliciting further public comments before reaching a conclusion. This postponement aligns with the SEC’s historically cautious approach to approving crypto-based ETFs and reflects the regulatory challenges still present in the market.
CoinShares is among several institutional applicants, including 21Shares and Grayscale, awaiting SEC rulings on similar ETF proposals. Although this delay creates short-term uncertainty and tempers immediate market enthusiasm, it maintains expectations of eventual approval based on past regulatory patterns—particularly the precedent set by Bitcoin and Ethereum ETF approvals, which similarly experienced initial delays.
Market analyst James Seyffart from Bloomberg emphasizes the SEC’s typical thorough procedure, suggesting that while the ETFs may face denials or delays until all procedural steps are exhausted, eventual approval is very likely. This view is supported by industry experts who cite regulatory rulings equating futures and spot markets, limiting grounds for rejection related to market manipulation concerns.
The SEC’s extended review influences market sentiment around XRP and Litecoin, temporarily holding back potential price appreciation tied to ETF greenlighting. However, historical trends indicate that these delays tend not to permanently derail the positive market impacts that ETF approvals typically generate, such as increased institutional interest and enhanced asset robustness.
Investors and market participants remain watchful for further SEC communications and public feedback, which will be critical in shaping the future trajectory of XRP and Litecoin ETFs and their associated trading dynamics.