Cardano News Today: SEC's ETF Stalemate Throws Altcoin Recovery Into Doubt

The U.S. Securities and Exchange Commission's prolonged review of over 150 altcoin exchange-traded fund applications has dampened institutional enthusiasm for non-Bitcoin cryptocurrencies, according to a Coinotag report. With Solana (SOL) leading the pack with 23 filings and Ripple (XRP) and Ethereum (ETH) trailing with 20 and 10 applications respectively, the crypto market is bracing for a potential liquidity crunch as approvals remain stalled due to a government shutdown.

The SEC's delayed decisions have created a regulatory limbo, with key spot ETFs for Solana and XRP pushed past October deadlines, according to a Yahoo Finance report. This uncertainty has coincided with a decline in altcoin exchange inflows and liquidity below $100 billion-a level last seen in July 2025-raising concerns about the market's ability to sustain price recoveries. Bitcoin's dominance, hovering near 60%, further constrains altcoin upside, as investors remain cautious about allocating capital to riskier assets without regulatory clarity.

Despite the stagnation, optimism persists for certain projects. Cardano (ADA) and XRP have seen strong market support, with prediction markets assigning a 77% probability of a Cardano ETF approval by year-end. However, experts like Andrew Jacobson, former legal head at 21Shares, caution that traditional investors may favor diversified index funds over single-token bets, given the complexity of navigating individual altcoins. This sentiment aligns with the 10 issuers seeking approval for basket-based ETFs that track multiple assets.

The Sui blockchain has emerged as a potential bright spot, with a 21Shares update to its ETF filing to include staking operations managed by Coinbase. The amendment, which also outlines plans for a Nasdaq listing, has boosted SUI's price by 2.5% to $2.47, reflecting renewed institutional interest in yield-generating crypto products. Meanwhile, Bitcoin ETFs continue to outperform, with $20.33 million in inflows recorded on October 23, compared to Ethereum ETFs' $127.51 million outflows.

Market participants are closely watching liquidity trends, as historical data shows declines often coincide with Bitcoin consolidations that pull altcoins lower. For example, Q1 2025 saw stablecoin inflows drop by half, correlating with a 30% slump in Bitcoin's price from $109K to $70K. While Q2 improvements briefly lifted Bitcoin to $126K, the current environment remains fragile, with analysts emphasizing that an Ethereum-led recovery could be pivotal for altcoins.

The regulatory landscape remains contentious. Over 16 crypto firms have applied for national trust bank licenses from the Office of the Comptroller of the Currency (OCC), but only one has been approved, amid lobbying by traditional banks against crypto custody models. This resistance underscores broader concerns about compliance and risk management, complicating the path for altcoin ETFs to gain traction.