The U.S. Securities and Exchange Commission (SEC) formally extended its review period for various proposed spot cryptocurrency exchange-traded funds (ETFs) that involve XRP and Dogecoin (DOGE) by announcing an XRP ETF delay. The extension of review timelines by the SEC affects the 21Shares Core XRP Trust and Grayscale’s XRP Trust and Dogecoin Trust applications that were due for decisions on May 21 and 22 while awaiting the final DOGE ETF decision.
Through this extension, the SEC demonstrates its dedication to fully examining whether proposed crypto ETFs fulfill the rigorous investor protection and market integrity requirements established by the Exchange Act. The Commission made clear through its action that it does not favor either approval or denial while demonstrating a dedication to thorough assessments in light of increasing crypto-based financial product submissions.
Understanding the SEC’s ETF Review Process
Specific funds aiming to provide investors with direct exposure to XRP and DOGE through ETF shares now face a XRP ETF delay. The 21Shares Core XRP Trust plans to launch on Cboe with the purpose of mirroring the performance of the CME CF XRP-Dollar Reference Rate. The Grayscale XRP Trust and Grayscale Dogecoin Trust, planned for NYSE Arca, would replicate CoinDesk’s XRP Price Index and Dogecoin Price Index, respectively, while using Coinbase Custody for asset storage.
The SEC stated in its official filings that beginning proceedings now is justified because of the legal and policy issues brought up by the proposed rule change. Through this action, the Commission demonstrates its commitment to obtaining extensive feedback from interested parties, which allows for thorough examination of all relevant issues before reaching conclusions about the proposed rule changes.
Expert Insights: What the Delays Mean for Crypto ETFs
According to industry experts like Bloomberg ETF analyst James Seyffart, the XRP ETF delay represents typical regulatory steps taken for new financial offerings. James Seyffart explained that early approvals for XRP ETFs are improbable because the SEC generally uses all its designated time to review 19b-4 filings. The pattern of delays indicates that this is standard practice rather than an irregular occurrence.
According to Seyffart, the earliest expected timeframe for final decisions is October, during the early fourth quarter. Approval of SEC crypto ETFs before late June or early July would be deemed extremely rare, regardless of how the SEC generally views cryptocurrency. He suggested that a Litecoin ETF is more likely to receive approval earlier than other altcoin crypto ETFs based on standard regulatory patterns.
Key Altcoins Await Regulatory Green Light
The native token XRP of the XRP Ledger blockchain network stands as one of the primary cryptocurrencies included in these ETF proposals. By May 21, XRP reached a market capitalization of roughly $138 billion, which positioned it as a major digital asset in the cryptocurrency market. The listing of this digital asset in spot ETF applications indicates increasing institutional demand for regulated channels to invest in such types of assets.
Dogecoin (DOGE), the largest meme coin since its creation, still awaits the SEC’s DOGE ETF decision, which remains deferred. DOGE’s market capitalization stood at $33.7 billion when its potential spot ETF inclusion demonstrated expanding market demand for varied cryptocurrency investment options. The SEC demonstrates its careful methodology toward digital assets through its repeated postponements in multiple crypto-related submission processes.
Navigating the Future of Spot Crypto ETFs
The Commission demonstrates its thorough procedure for handling innovative financial products through the recent XRP ETF delay and decisions on other similar crypto-related proposals. During this period, regulators study how these investment products fit established investor protection guidelines to maintain market integrity through detailed due diligence instead of quick decisions.
Analysts currently advise applicants and investors to adopt a patient approach since developments are still pending. The SEC almost always uses complete review periods for crypto ETFs, which shows early decisions happen only in special circumstances. The final approval of proposed SEC crypto ETFs depends on their fulfillment of strict regulatory standards, which will establish future guidelines for crypto-backed financial products.
