U.S. Securities and Exchange Commission (SEC) has again stopped its Truth Social Bitcoin ETF delay decision to approve several highly-publicised cryptocurrency exchange-traded funds (ETFs). Some of the filings are by Truth Social Bitcoin, and Ether ETFs, with others filed separately XRP and Litecoin ETFs. This delay indicates that the SECs cautious approach to the crypto market remains unchanged, despite the increasingly expanding institutional adoption and regulatory evolution of the market elsewhere.
The news has elicited hard reactions among crypto enthusiasts, with observers in the sector asking themselves whether 2025 will be the year of the breakthrough of the various crypto ETFs or a year of missed opportunities.
Background: The Growing ETF Craze
The crypto ETFs have gained considerable momentum due to the first Bitcoin futures ETFs approval by the SEC in 2021. But the real milestone would occur a few years later in 2024 when the SEC approved several spot Bitcoin ETFs, providing its investors with direct access to BTC without getting the asset.This move brought billions of dollars of institutional inflows into the crypto sector.
Since then, applications for new ETFs have surged. Asset managers, investment firms, and even unconventional entrants—like Truth Social, the media platform founded by former U.S. President Donald Trump—are racing to launch their products. The motivation is clear: ETFs provide mainstream accessibility, boost liquidity, and signal growing regulatory acceptance of digital assets.
SEC’s Recent Delays Explained
On August 2025, the SEC officially announced delays on several ETF filings:
- Truth Social’s Bitcoin ETF
- Truth Social’s Ether ETF
- XRP ETF application
- Litecoin ETF application
The Commission cited its standard reasoning: the need for additional time to review proposals, examine market surveillance mechanisms, and address concerns about investor protection.
This is not unusual. The SEC often extends review periods up to the final legal deadlines before making decisions. While frustrating for investors, delays don’t necessarily signal rejection. Instead, they show the SEC’s methodical approach in balancing innovation with risk management.
Truth Social’s Role in the ETF Race
What makes this round of filings particularly unique is Truth Social’s involvement. As a politically connected platform with strong influence in conservative and crypto-friendly circles, its ETF proposals are more than just financial products—they carry a cultural and political narrative.
Market analysts suggest that Truth Social’s entry could put additional pressure on the SEC, especially during an election cycle where crypto policy is becoming a political talking point. While some see this as a bold move to legitimize crypto further, others caution that political influence could complicate the regulatory process.
XRP and Litecoin ETFs – The Underdogs
Although Bitcoin and Ethereum monopolize the news feed, the fact that XRP and Litecoin ETFs are included as well is also vital.
- XRP: Ripple’s token has long battled regulatory scrutiny due to the SEC’s lawsuit, which ended with partial clarity in 2023. An XRP ETF could mark a turning point in the token’s acceptance within U.S. markets.
- Litecoin (LTC): Once dubbed “the silver to Bitcoin’s gold,” Litecoin has remained a resilient, community-driven cryptocurrency. Despite lower adoption compared to BTC and ETH, an LTC ETF would represent recognition of its longevity and utility in the digital economy.
However, both face steeper challenges. The SEC may view them as higher risk compared to Bitcoin and Ethereum, given their smaller market share and past controversies.
Market Reaction to the Delay
The delay sparked mixed reactions across crypto markets:
- Bitcoin (BTC) Bitcoin (BTC) and Ethereum (ETH) were quick to experience temporary falls as traders factored in regulatory risk.
- There was increased volatility in the XRP where the community is complaining about continuous caution by SEC.
- The long-term holders of Litecoin (LTC) have slightly increased their interest in this cryptocurrency stating that the delay is not as destructive as a flat refusal.
Analysts observe that short-term hope is dampened by delays but this is a common expectation in the ETF approving process. The net development in this direction remains a positive one and definitely on the path of eventual acceptance, all the more so given international trends: countries such as Hong Kong, Canada, and Brazil have already taken a step forward in the direction of providing crypto ETFs.
What’s Next for Crypto ETFs?
The SEC is expected to revisit these filings later in 2025, with new deadlines approaching in Q4 2025 and early 2026. Possible outcomes include:
- Approval: A green light for any of these ETFs could significantly boost market sentiment and institutional adoption.
- Additional Delay: SEC can still move to advance decisions to final deadlines.
- Rejection: Unprobable, yet possible, the greatest chance of that is with XRP, and LTC, owing to the peculiarities of their regulation history.
Should they pass, such ETFs could open a wider range of opportunities to investors, who could now invest in Bitcoin and Ethereum, along with a range of other altcoins that may catalyze the next wave of crypto bull runs, since these ETFs would expand institutional access to non-Bitcoin/Ethereum crypto assets.
Conclusion
The SEC move to postpone the Truth Social Bitcoin and Ether ETFs, as well as the XRP and Litecoin applications illustrates the regulatory tug of war between prudence and innovation. The delays are not denials even though they are frustrating to the investors. Rather, they are an indication of the considered approach of SEC to a fast developing sector.
As the world woke up to the pace of adoption and institutional interest flourishes, most analysts reckon that it is only a matter of time before the presence of a wide array of crypto ETFs perhaps to include altcoils is a reality. In the meantime, investors ought to expect more volatility, watching the next set of SEC deadlines at the end of 2025.