Regulators Prolong Altcoin ETF Deliberations, Investors Watch Closely

The U.S. Securities and Exchange Commission (SEC) has extended its review period for the Bitwise Dogecoin ETF and the Grayscale Hedera ETF until November 12, 2025, highlighting the agency’s ongoing backlog in processing altcoin exchange-traded fund (ETF) applications. This delay is part of a broader trend, as the SEC has pushed back several decisions on crypto ETFs this year, with over 92 applications pending as of August 29. Among the most notable applications are those for Solana (SOL), XRP, and Ethereum (ETH), which have attracted multiple institutional proposals.

Grayscale, a leading digital asset investment platform, continues to lead the charge in crypto ETF innovation. The firm has filed applications to convert its Litecoin and Bitcoin Cash trusts into ETFs, following the precedent set by its successful conversion of the Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF. These new ETFs aim to offer daily share creations and redemptions on a national exchange, addressing the premium and discount issues often seen in over-the-counter (OTC) trading of digital assets. Grayscale has also submitted a separate S-1 filing for a Hedera (HBAR) ETF, with an expected decision from the SEC by October 13 or November 12.

The SEC’s extended timelines have created uncertainty for the altcoin ETF market, with investors and institutional players closely monitoring the agency’s decisions. As of July 31, at least 31 altcoin ETF applications had been filed in the first half of 2025, spanning proposals for XRP, Dogecoin, Solana, Litecoin, Avalanche, and BNB. Institutional interest is particularly strong for Solana and XRP, with eight and seven applications submitted for each, respectively. Analysts note that the approval of these ETFs could unlock significant institutional inflows, with forecasts suggesting up to $5–8 billion in initial inflows for XRP ETFs and a potential price target of $335 for Solana.

Despite the delays, the regulatory environment appears to be evolving. The recent federal court ruling that XRP is not a security provides a legal advantage for XRP-based products, unlike Solana, which still faces regulatory scrutiny. Grayscale’s strategy to convert existing trusts into ETFs under the SEC’s proposed Generic Listing Standards suggests a broader industry push for standardized regulatory treatment. If these standards are adopted, it could expedite the approval process for multiple crypto ETFs, streamlining market access for investors.

The potential approval of altcoin ETFs also signals a pivotal moment for the broader cryptocurrency market. An influx of institutional capital through these funds could stabilize prices, reduce volatility, and improve market depth. However, analysts caution that the market may experience short-term corrections following approvals, as early investors lock in profits. This pattern was observed with XRP in the past, where positive legal developments were followed by price dips. Thus, while the long-term outlook for altcoin ETFs remains optimistic, market participants are advised to remain cautious in the near term.