SEC Delays Altcoin Rally with ETF Approval in Limbo

The crypto industry is awaiting an altcoin season, but analysts say it won't materialize until new exchange-traded funds (ETFs) launch. Dozens of altcoin ETF proposals are under SEC review, with some having approval odds of up to 95%. Industry optimism for approval remains high despite recent delays.

The crypto industry has been eagerly awaiting an altcoin season, but the anticipated rally has yet to materialize. Analysts attribute this delay to the regulatory review process of new exchange-traded funds (ETFs), specifically those focused on altcoins. According to a recent Bitfinex report, a sustained altcoin rally depends on the launch of these new ETFs [1].

Currently, dozens of altcoin ETF proposals, including those tracking Solana (SOL), XRP (XRP), Hedera (HBAR), and Litecoin (LTC), are under review by the U.S. Securities and Exchange Commission (SEC). Industry optimism for approval remains high, with some ETFs having approval odds of up to 95% [1]. However, recent delays in the regulatory process have created uncertainty around the potential launch timeline.

The SEC has cited the need for additional review and has set October as the deadline for decisions on most proposals. This delay has pushed back the potential start of an altcoin season, which could have been fueled by the launch of these ETFs. The long-awaited rally may take more time to materialize as a result [1].

The regulatory review process for these ETFs is complex and involves multiple steps. The SEC has opened a 21-day public comment period on Canary’s proposed staked Injective ETF, which would track Injective’s native token (INJ) and list on the Cboe BZX Exchange [2]. The SEC’s review of this proposal and others like it is crucial for determining the future of altcoin ETFs and, consequently, the crypto market.

Analysts have noted that the approval of these ETFs could significantly impact the crypto market by attracting institutional capital and generating fresh demand. However, the ultimate verdict on these proposals rests with the regulatory watchdog, and it remains to be seen whether these funds will receive the greenlight needed to usher in the next altcoin season [1].

Investors and financial professionals should closely monitor the regulatory process and the market's reaction to any decisions made by the SEC. The approval of altcoin ETFs could transform the market dynamics of various cryptocurrencies, including Dogecoin (DOGE), which has a 60-70% chance of ETF approval within the next 12-18 months [3].

References:
[1] https://crypto.news/is-the-sec-delaying-altcoin-season-analysts-say-no-rally-until-etfs-launch/
[2] https://en.coinotag.com/sec-begins-review-of-canarys-staked-injective-etf-proposal-injective-inj-may-face-technical-pressure/
[3] https://coinpaper.com/10709/dogecoin-etf-approval-70-likely-prepare-for-massive-5-x-price-surge