SEC, October altcoin ETF review…Solana·XRP approval a 'watershed'

The U.S. Securities and Exchange Commission (SEC) is facing final deadlines in October for a total of 16 crypto asset exchange-traded fund (ETF) applications, bringing Solana(SOL), XRP(XRP), and Litecoin(LTC) ETF approvals into focus for the market.

On the 3rd (local time), according to Cointelegraph, the SEC approved 'generic listing standards' for spot commodity-based exchange-traded products (ETPs) in September, substantially streamlining individual reviews and rule-change procedures. As a result, it is assessed that an institutional foundation has been established that could further accelerate ETF approvals.

The political environment has also changed. Zach Pandl, Grayscale's head of research, said, "Since the start of the Trump administration, demands for a clear regulatory framework for the cryptocurrency industry have intensified across the White House, Congress, and regulatory authorities," adding, "With bipartisan support, confidence has grown that virtual assets will establish themselves in the United States over the long term."

Market demand is a variable. James Seyffart, a Bloomberg ETF analyst, said, "Solana and XRP have futures markets that can somewhat support ETF demand, but it's hard to expect inflows on the level of Bitcoin," and predicted, "In the long term, index-style products containing multiple assets or basket ETFs will be growth drivers."

If ETFs are approved, the expansion of the derivatives market is also expected to accelerate. Seyffart explained, "Various structures, such as Solana staking ETFs, covered-call ETFs, leveraged·inverse products, could be launched quickly," noting, "There is also a possibility that market volatility could increase."