SEC Delays Approval of Solana ($SOL) and XRP Spot ETF Again… Market Expects Approval Within the Year

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on approving Franklin Templeton's XRP and Solana (SOL) spot ETF applications. As part of this delay, the SEC plans to receive feedback on related rule changes through a public comment period over the next 4 weeks. This appears to reflect the regulatory agency's overall cautious approach to cryptocurrency ETFs. This delay is not significantly different from market expectations. Bloomberg ETF analyst James Seyffart said, "It's not surprising at all that the SEC has delayed its decision on Solana and XRP spot ETFs." However, he added that it could be approved next month or potentially wait until the final deadline in October. Recently, the atmosphere has been changing. Over the past two weeks, the SEC has reportedly been actively communicating with asset management firms pushing for Solana ETF launches. The industry is expecting the Solana ETF could be approved as early as this year or within the next few months. The market is showing high expectations that these spot ETF approvals could serve as a catalyst for an *altcoin season*. After the U.S. approved Bitcoin (BTC) and Ethereum (ETH) spot ETFs last year, capital flows were directed towards major coins. While altcoin trading volume and investment enthusiasm subsequently cooled, there are predictions that funds might flow back into the altcoin market depending on the approval of Solana and XRP ETFs. Particularly, Canada's precedent of being the first to approve a Solana spot ETF is acting as a factor to reduce market uncertainty. Additionally, institutional investor demand for Solana continues to increase steadily, which is interpreted as a positive signal in conjunction with the expansion of SOL-based strategic funds and products. While the prevailing view is that the SEC will ultimately approve Solana and XRP spot ETFs, the regulatory pendulum is expected to remain in cautious mode for now. Given the potential market impact depending on the approval timing, the industry needs to closely observe the SEC's moves in the coming months.