On the morning of March 12, the U.S. Securities and Exchange Commission (SEC) once again delayed its decision on multiple cryptocurrency spot ETF applications, including Grayscale's Cardano (ADA) and Dogecoin (DOGE) spot ETFs, Canary's XRP, Solana and Litecoin spot ETFs, and VanEck's Solana spot ETF.
This news quickly sparked heated discussions in the Bit cryptocurrency market, as spot ETFs are seen as a key bridge between traditional finance and digital assets. Investors can't help but wonder: Why has the SEC repeatedly delayed approvals? What is the process behind it? And what will the future hold? Let's unravel these questions from the perspectives of history, process, and industry views.
SEC's "Delay Tradition": From Bit to Emerging Assets
The SEC's cautious attitude towards Bit cryptocurrency spot ETFs is not new. Looking back, the application process for Bit Bit ETFs has been a marathon. As early as 2013, the Winklevoss brothers first submitted a Bit Bit ETF application, but the SEC rejected or delayed similar applications multiple times on the grounds of market manipulation and investor protection. It wasn't until January 2024 that the SEC officially approved the first 11 Bit Bit spot ETFs, a process that took nearly a decade. The approval of the Ethereum spot ETF also went through a long wait, not being finalized until July 2024. In comparison, emerging assets like Solana, XRP, Cardano and Dogecoin, whose ETF applications started later, have naturally inherited the SEC's cautious approach.
Among the list of delayed applications, Grayscale's Dogecoin and Cardano ETFs are particularly noteworthy. As a giant in the crypto asset management field, Grayscale has previously forced the SEC to approve its Bit Bit trust conversion to an ETF through litigation, raising market expectations for its subsequent moves. VanEck and Canary, on the other hand, represent the dual attempts of traditional finance and emerging institutions to bring more diversified crypto assets into the mainstream market. However, the SEC seems in no hurry to give the green light, which is in line with its past pattern: for assets with high volatility and immature regulation, delay has almost become the standard.
Average Time and Application Process: A Test of Endurance
So how long does it take on average from submitting an application to final approval for a Bit cryptocurrency spot ETF? Using Bit Bit as an example, its applicants have gone through years of repeated adjustments and waiting. According to the SEC's public process, once an exchange submits a 19b-4 rule change application (involving trading rule adjustments) and publishes it in the Federal Register, the SEC has up to 240 days for review. During this period, the SEC typically provides feedback in stages: the first response within 45 days, followed by possible further delays of 45 days, 90 days or even 60 days, until the final decision. It's worth noting that this 240-day period is not an absolute limit - the SEC can approve or reject at any time, or may require a resubmission due to insufficient application materials, thereby extending the actual time.
The approval of the Ethereum spot ETF provides a more specific reference. From the multiple institutions submitting applications in the second half of 2023 to the SEC's preliminary approval of the registration in May 2024 and the official listing in July, the entire process took about a year. The long history of Bit Bit ETFs, however, shows that if the legal status or market maturity of an asset is in doubt, the time can be extended indefinitely. Currently, the applications for ETFs of assets like Solana and XRP are mostly in the early stages, with 19b-4 documents already submitted but not yet approved, and the final decision may still be months or even longer away. Grayscale's Cardano and Dogecoin ETFs, involving smaller market cap assets, may face even greater approval challenges.
As of March 2025, most of these delayed ETF applications are in the "waiting for feedback" stage at the SEC. Exchanges and issuers have submitted preliminary documents, and the SEC may issue the first official response in the coming weeks, deciding whether to continue the delay or move on to the next round of review. The market generally believes that the approval of Solana and XRP faces additional challenges, as the SEC has previously viewed these two assets as potential securities, adding legal uncertainty. In comparison, Dogecoin, not being clearly defined as a security, may have a better chance of breaking through first, but its market size and actual use case may still make the SEC hesitant.
Market Perspectives: Optimism and Caution Coexist
Regarding this delay, industry insiders' attitudes show a polarized picture. Bloomberg senior ETF analyst Eric Balchunas once stated that the success of Bit Bit and Ethereum ETFs has paved the way for other assets, but he also warned that the "transition period" after the arrival of new SEC Chairman Paul Atkins may slow down decision-making. Bitwise's Chief Legal Officer Katherine Dowling, on the other hand, is more optimistic, believing that the SEC's cooperation with the Commodity Futures Trading Commission (CFTC) is strengthening, and ETFs for non-security assets like Dogecoin may be approved more quickly. However, she also pointed out that the controversy over the security attributes of Solana and XRP remains a stumbling block.
The KOLs in the Bit community are more straightforward. The Bit community has a clear attitude on this. Many observers believe that the SEC may continue its delaying tactics until these assets' market compliance is fully proven, as evidenced by the long approval process of the Bit Bit ETF. At the same time, institutional analysis also provides a more rational perspective. Guosen Securities pointed out at the end of 2023 that the approval of Bit Bit spot ETFs will set a benchmark for other Bit assets, but the SEC's concerns are still the violent price fluctuations and regulatory gaps. BlackRock's Global Research Head Greg Cipolaro also commented that each step of the approval process is accompanied by market testing, and the SEC needs to see sufficient liquidity and custody guarantees.
What Should Investors Focus On?
For investors, the SEC's delay is both a challenge and an opportunity. In the short term, the prices of these Bit assets may be under pressure due to the delayed approvals, but in the long run, the approval of spot ETFs will attract more institutional capital and drive market maturity. Key points to watch include: the SEC's first official response (expected before mid-April), whether the applicant institutions will adjust their custody solutions to meet regulatory requirements, and the policy tendencies of the new SEC chairman. Additionally, the progress of the Solana and XRP securities lawsuits will also directly impact their ETF prospects.
In summary, the approval of Bit cryptocurrency spot ETFs is a test of endurance, and the SEC's cautious attitude stems from a dual consideration of investor protection and market stability. History tells us that the success of Bit Bit and Ethereum was not achieved overnight, and the path for emerging assets will only be more winding. But as industry insiders have said, as long as the market continues to evolve, the regulatory green light will eventually turn on - it's just a matter of time. Investors may want to be patient and watch the developments unfold.
