U.S. SEC Delays Decision on Franklin Templeton’s Spot XRP and Solana ETFs: What Next?

The Securities and Exchange Commission (SEC) in the United States recently announced a delay in its decision on two proposed exchange-traded funds (ETFs) – the Franklin XRP ETF and the Franklin Solana ETF. The SEC has requested public comments on the proposed rule changes to list these spot ETFs over the next four weeks.

According to James Seyffart, an ETF analyst at Bloomberg, the delay in the decision for the spot Solana and XRP ETFs was not unexpected. The SEC has been postponing decisions on various altcoin spot ETF applications in recent times. Despite this, there has been increased engagement between the SEC and fund managers looking to offer spot Solana ETFs in the past few weeks, leading to speculation that approval may come before the end of the year.

Seyffart commented, “I wouldn’t be completely shocked if we see approvals for Solana ETFs in the next month or so. But I also wouldn’t be surprised if we have to wait until the final deadline in October. Timeline is unknown.”

The delay in approving these altcoin spot ETFs is expected to further postpone the highly anticipated 2025 altseason. The approval of spot Bitcoin and Ethereum ETFs in the US last year disrupted the traditional crypto cash rotation from Bitcoin to altcoins. However, it is believed that the SEC will eventually approve the spot Solana and XRP ETFs, especially given the recent approval of Canada’s first spot SOL ETF. Institutional investors have shown an increased demand for Solana, particularly led by SOL Strategies.

Overall, the market impact of the delay in approving these ETFs remains to be seen. However, the growing interest in Solana and other altcoins among investors suggests that approval may be on the horizon. Stay tuned for further updates on the SEC’s decision regarding the Franklin XRP and Franklin Solana ETFs.