SEC Delays Decision on CoinShares Spot XRP and Litecoin ETF

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The U.S. Securities and Exchange Commission (SEC) has once again extended its review period for key cryptocurrency exchange-traded funds (ETFs), pushing back its decision on the CoinShares spot XRP and Litecoin ETF applications. This latest move continues a pattern of cautious regulatory scrutiny over new crypto-based financial products seeking approval in the U.S. market.

Originally facing a second deadline on May 26, 2025, both the proposed XRP and Litecoin ETFs from CoinShares have now been deferred until August 24, 2025. Rather than issuing a final approval or rejection, the SEC has opened the door for additional public commentary and rebuttals—indicating ongoing deliberation and a need for further stakeholder input.

This procedural delay aligns with the agency's broader approach to crypto ETFs, especially those tied to digital assets beyond Bitcoin. The SEC has consistently used its authority to extend review timelines, allowing more time to assess legal, market, and investor protection implications.

Broader Pattern of Regulatory Caution

The CoinShares delay is not an isolated case. The SEC has recently postponed decisions on multiple other XRP ETF filings, including those from Grayscale, 21Shares, Bitwise, Canary Capital, and WisdomTree—each facing similar second-deadline extensions around late May 2025.

Similarly, applications for spot Solana ETFs from Bitwise and 21Shares have also been pushed back, reinforcing a consistent regulatory stance: deliberate pacing and heightened scrutiny. While these delays do not signal outright rejection, they underscore the SEC’s cautious posture toward approving ETFs backed by digital assets that have not yet received clear regulatory classification.

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Expert Predictions: Approval Likely, But Not Immediate

Despite the delays, industry analysts remain optimistic about eventual approvals. Bloomberg Intelligence senior analyst James Seyffart, a widely followed voice in the ETF space, believes that Paul Atkins’ team at the SEC will ultimately greenlight these products—including the XRP ETFs—but likely not before reaching the final decision window.

Seyffart projects that approval for the XRP and Litecoin ETFs could come in early Q4 2025, with a best-case scenario pointing to late June or early July 2025. This timeline reflects historical precedent: the SEC often waits until the last possible moment to issue rulings on controversial or novel financial instruments.

Eric Balchunas, another prominent Bloomberg ETF analyst, shares this outlook but places higher confidence in the Litecoin ETF’s chances. According to Balchunas and Seyffart, Litecoin has a 90% probability of approval, slightly edging out XRP, which they estimate at 85%.

Their reasoning hinges on Litecoin’s longer track record as a decentralized network with clear parallels to Bitcoin—making it potentially easier for regulators to classify under existing securities frameworks.

Market Sentiment vs. Analyst Outlook

Interestingly, prediction markets tell a slightly different story. Polymarket data currently suggests an 83% chance of XRP ETF approval by year-end 2025, compared to a 79% likelihood for Litecoin. This divergence highlights the gap between retail investor optimism and institutional analysis.

XRP’s momentum may be fueled by recent developments involving Ripple, including its ongoing efforts to expand financial services—such as applying for banking licenses—and increased adoption of its stablecoin RLUSD. Meanwhile, Litecoin continues to maintain steady network activity and miner support, though it lacks the same level of media visibility.

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Why These ETFs Matter

The introduction of spot XRP and Litecoin ETFs would represent a significant milestone in crypto market maturation. Such products would allow traditional investors to gain exposure to these digital assets through regulated brokerage accounts—without needing to manage private keys or use cryptocurrency exchanges directly.

For XRP, an ETF could enhance liquidity, improve price discovery, and potentially reposition the asset amid lingering legal questions from Ripple’s past dispute with the SEC. For Litecoin, approval would validate its status as a long-standing “silver to Bitcoin’s gold” alternative within the digital asset hierarchy.

Both outcomes would also set important precedents for future ETF applications involving other major cryptocurrencies like Solana, Cardano, or Polkadot.

Frequently Asked Questions (FAQ)

Q: Why is the SEC delaying these ETF decisions?
A: The SEC uses delay periods to gather additional public feedback, assess risks, and ensure compliance with securities laws. These extensions are common for novel financial products like crypto ETFs.

Q: What does “calling for comments and rebuttals” mean?
A: It means the SEC is inviting stakeholders—including investors, firms, and experts—to submit formal opinions or challenges regarding the ETF applications before making a final ruling.

Q: When is the next deadline for the CoinShares XRP and Litecoin ETFs?
A: The next decision deadline is August 24, 2025, when the SEC must issue a final determination unless another extension is issued.

Q: Are XRP and Litecoin considered securities by the SEC?
A: The SEC has not officially classified either asset as a security. However, their classification remains a central issue in evaluating whether an ETF based on them complies with federal securities law.

Q: How do crypto ETF delays affect market prices?
A: Short-term volatility can occur around announcement dates, but long-term price trends depend more on adoption, network fundamentals, and macroeconomic factors than regulatory timelines.

Q: Could these ETFs be rejected outright?
A: While possible, outright rejection is considered unlikely given the growing acceptance of crypto ETFs post-Bitcoin approval in 2024 and increasing institutional demand.

Core Keywords

As the August 2025 deadline approaches, all eyes will remain on Washington and Wall Street alike. With strong analyst confidence and rising institutional interest, the path toward approval appears increasingly clear—even if the journey remains slower than many investors hoped.

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