Solana And Litecoin ETFs Hit The Wall Despite SEC Pro Crypto Makeover

Since President Donald Trump assumed office in January, the tone around crypto has dramatically changed. Crypto industry participants are now more hopeful amid positive crypto-related legislative and regulatory progress under the Trump administration.

However, challenges remain, particularly in the altcoin ETF approval sphere.

SEC Delays SOL And Litecoin ETF Proposals 

The U.S. Securities and Exchange Commission (SEC) has delayed deciding whether to allow the trading of altcoin spot ETFs, which would expose investors to Solana and Dogecoin.

Wall Street’s biggest regulator said Tuesday that it would wait until October 2025 to decide next steps for Grayscale’s spot SOL Trust ETF. The SEC also delayed answering the proposed Grayscale Litecoin Trust, citing the need for more time to evaluate whether the filing meets legal and market structure requirements.

According to data from CoinGecko, SOL is currently the sixth-biggest cryptocurrency by market cap, while Litecoin is the 25th largest. LTC is a forked version of Bitcoin launched in 2011 by ex-Google employee Charlie Lee.

Over 70 Crypto ETFs Awaiting SEC Approval

The SEC currently has over 70 altcoin ETF applications to consider following the regulator’s approval last year of spot Bitcoin ETFs, which are the most successful launch in ETF history.

The SEC had rejected applications for Bitcoin funds for over 10 years before giving them the regulatory sign-off, and then greenlighted Ethereum ETFs a couple of months later.

Now, the SEC has a new chair, Paul Atkins, following the election of crypto-friendly President Trump, and investment managers are trying their luck with other digital asset-related products. Since his return to the White House in January, the agency has thrown out multiple lawsuits against crypto companies and has held public roundtables with crypto industry leaders to discuss how to regulate the burgeoning industry.

Notably, prominent asset managers like Bitwise, Franklin Templeton, Grayscale, and 21Shares have already submitted paperwork to get new crypto ETFs approved. Coins like SOL, Ripple-affiliated XRP, and Cardano’s ADA are among the biggest targets for issuers right now.

Meanwhile, investors are now looking to the Polkadot and XRP-based ETFs deadlines next month. While those decisions may also be postponed as the SEC often takes full advantage of its 240-day review period, the agency is expected to take an overall friendlier approach to crypto ETFs than in the previous Biden administration.