Last year on December 4th, the Crypto Markets saw one of the best Altcoin rallies yet. Market cap touched $3.6 trillion, and the wait for Altcoin ETFs was believed to be over. XRP and Solana were supposed to be the first Altcoins to be approved for ETFs.
The Trump administration even ended all Biden-era laws, such as the DeFi Broker Rule. The SEC also saw a change in leadership, from Gary Gensler to Paul Atkins.
However, more than a year after winning the elections, the decision on several Altcoin ETFs still remains pending.
Altcoin ETFs Still Waiting for Approval
Altcoin ETFs have been the most-anticipated approvals in the Trump administration because they could bring the Altcoin season. An Altcoin season is critically necessary for the markets to rally on a wider scale. So far, only Bitcoin has rallied considerably, and Ethereum has rallied only partially (both have their ETFs).
Another ETF was recently approved and listed: XRP.
However, the long approval process and unnecessary delays have been testing several applicants, too.
SEC Scraps 60 Day and 75 Day Windows
The SEC has officially scrapped the 60- and 75-day waiting windows for ETF decisions.
SEC Blocks 3x, 5x Leveraged ETFs
Besides keeping the current decision on Altcoin ETFs pending, the US SEC has blocked all Altcoin ETFs that have some leverage associated with them. The regulator seems to allow only non-leveraged spot ETFs at present.
The reason given for disapproving these ETFs is that their approval would cause market instability.
What the SEC isn’t telling is that applicants tried to bypass a rule by making these leveraged ETFs appear as futures ETFs, something the SEC has approved very readily, even during the Biden administration.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
