SEC Faces a Surge of Altcoin ETF Applications, Potentially Reshaping the Market Landscape

Author: 1912212.eth, Foresight News

Original Title: October Decides Everything: Altcoin ETFs to Face SEC’s Final Verdict

In October 2025, the U.S. Securities and Exchange Commission (SEC) is set to make final decisions on at least 16 spot cryptocurrency exchange-traded funds (ETFs). These applications involve a variety of tokens beyond bitcoin and ethereum, such as SOL, XRP, LTC, DOGE, ADA, and HBAR. According to the latest developments, the SEC has withdrawn multiple delay notices and accelerated the approval process through new universal listing rules, shortening the review period to less than 75 days.

According to crypto journalist Eleanor Terrett, the U.S. SEC has asked issuers of LTC, XRP, SOL, ADA, and DOGE ETFs to withdraw their 19b-4 filings, as these documents are no longer needed after the approval of the universal listing standards.

Since the approval of bitcoin and ethereum spot ETFs, there has been significant capital inflow, which has contributed to price increases. So, can multiple ETFs be approved this time, and will there be a similar price surge effect?

The Final Deadline for Multiple Token ETFs Is in October

According to information compiled by Twitter blogger Jseyff, the final deadlines for several altcoin spot ETFs are scattered throughout October. The first to be reviewed is Canary’s LTC ETF, with a deadline of October 2.

Next are Grayscale’s Solana and LTC trust conversions, with a deadline of October 10, and finally WisdomTree’s XRP fund, with a deadline of October 24.

According to a soon-to-be-approved list created by Bloomberg ETF analyst James Seyffart, decisions could be made at any time before the final deadlines.

These applications come from institutions such as Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, and Franklin Templeton. Notably, BlackRock and Fidelity are not participating in this round, but this does not affect the potential impact—if approved, they could pave the way for larger-scale products in the future.

Since the BTC and ETH spot ETFs, no other tokens have received SEC approval. The SEC has continued its usual style of repeated delays for these applications. However, the upcoming final verdict must send a clear Yes or No decision to the market.

The market is eagerly awaiting.

The approval or rejection of Litecoin and SOL, which will be decided first, may determine market expectations going forward.

Approval Probability

At the end of July this year, the SEC’s new listing standards mainly focused on eligibility requirements and operational mechanisms for crypto ETPs. First, physical creation and redemption are officially allowed, meaning authorized participants can exchange ETP shares with actual crypto assets instead of cash.

The SEC also announced listing standards for spot ETFs. The new standards are expected to take effect in October 2025 and aim to simplify the ETF listing process. The “universal listing standards” require that crypto assets must have been listed on futures markets of major exchanges such as Coinbase for at least six months. This regulation is intended to ensure sufficient liquidity and market depth for the assets and to prevent manipulation.

Litecoin, known as a long-standing altcoin, is considered a prime candidate for early approval due to its maturity and non-security status. Litecoin founder Charlie Lee stated in a recent interview that he expects a spot LTC ETF to launch soon. This view is based on the SEC’s approval of universal listing standards for crypto ETFs and LTC being included as one of the ten assets that meet the criteria.

Charlie Lee discussed LTC’s prospects under the evolving regulatory framework in the interview. He mentioned that the SEC’s recent approval of universal crypto ETF listing standards is a key driver and emphasized that Litecoin meets the conditions for rapid approval.

As of now, the probability of Litecoin spot ETF approval this year has risen to 93% on Polymarket.

Regarding the SOL spot ETF, Bloomberg ETF analyst Eric Balchunas said, “To be honest, the success rate for SOL spot ETF approval is now close to 100%. The universal listing standards have rendered the 19b-4 filings and their timelines meaningless. Now, only S-1 form matters. The baby could be born at any time, so be prepared.”

It is worth noting that ADA is the last token awaiting a verdict at the end of October, and the probability of its ETF approval has also risen to 93% on Polymarket.

The SEC’s decisions in early October will clearly set the tone.

Previously, the SEC approved the Hashdex Crypto Index ETF. Recently, the Hashdex Nasdaq Crypto Index US ETF (NCIQ) added support for XRP, SOL, and XLM, allowing the product to provide U.S. investors with exposure to BTC, ETH, XRP, SOL, and XLM through a single investment tool.

Previously, the U.S. SEC approved the conversion of the Bitwise 10 Crypto Index Fund into an ETF, covering assets including BTC, ETH, XRP, SOL, ADA, SUI, LINK, AVAX, LTC, and DOT.

Will Approval Benefit Token Prices?

Bitfinex analysts previously predicted that the approval of crypto ETFs could trigger a new round of altcoin season or rebound, as these approvals would provide traditional investors with more crypto investment exposure.

However, not all analysts agree with this view.

Bloomberg ETF analyst James Seyffart stated that the current market trend is an altcoin rally driven by digital asset financial companies (DATCO) rather than traditional token price increases. Seyffart pointed out that institutional investors prefer multi-crypto portfolio products over single altcoin ETFs. He emphasized that institutional funds are more inclined to gain crypto exposure through regulated products rather than directly holding tokens, and this structural shift could permanently change the pattern of altcoin price surges.