The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on several spot-based cryptocurrency Exchange-Traded Funds (ETFs), including those tied to XRP and Dogecoin. The delay impacts proposals from prominent asset managers such as Grayscale and 21Shares, signalling continued regulatory caution surrounding digital asset investment vehicles.
Spotlight on Delayed ETF Proposals
According to official filings released on the SEC’s website, the Commission has extended the review period for three ETF applications that track XRP and Dogecoin performance. These include the Grayscale XRP Trust, the Grayscale Dogecoin Trust, and a 21Shares ETF. Rather than issuing a verdict, the SEC has initiated formal proceedings and invited public input to assess these filings’ legal and policy implications.
This move echoes the Commission’s previous delays in evaluating crypto-related ETFs. In March, for instance, the SEC postponed decisions on several applications, including those from Grayscale, VanEck, Canary, and 21Shares, pushing the deadline for Grayscale’s XRP ETF to May 21. With the latest extension, the regulatory agency is expected to take additional time to determine whether these ETFs meet standards outlined in Section 6(b)(5) of the Securities Exchange Act, particularly those aimed at preventing fraud and market manipulation.
Request for Public Comments
As part of its extended review, the SEC is now calling for public comments on the ETF proposals. The public comment period will remain open for 21 days from the filings’ publication in the Federal Register. Furthermore, interested parties will have 35 days from the same publication date to submit rebuttal comments.
The Commission emphasized that it has not made any final determinations and is still evaluating the policy and legal issues associated with the ETF applications. However, it noted that the filings raise “significant questions” that warrant a broader range of public perspectives before making a final ruling.
Bitwise Ethereum ETF Amendment Also on Hold
In addition to the XRP and Dogecoin ETFs, the SEC also postponed its decision on a proposed amendment to the Bitwise Ethereum ETF. The amendment would allow the fund to incorporate staking, thereby offering investors an opportunity to earn staking yields in addition to exposure to Ethereum’s price movements. This proposed change has similarly raised concerns that the Commission wants to address through public input.
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Expert Insights: Approval Unlikely Until Q4
Industry experts are not surprised by the SEC’s cautious approach. James Seyffart, an ETF analyst at Bloomberg Intelligence, commented that the Commission typically uses the whole 240-day review period allowed by law. According to Seyffart, it is highly unlikely that the SEC will approve any spot crypto ETFs during June or July, pointing instead to early Q4 2025 as the most realistic timeline for potential approvals.
He also highlighted that the final deadlines for several of the delayed crypto ETF applications, including the XRP ETF, fall in mid-October, which aligns with his earlier predictions.
Market Sentiment Remains Optimistic
Despite these delays, not all market watchers are concerned. Nate Geraci, president of ETF Store Inc., expressed confidence that the SEC will eventually approve ETFs for altcoins like XRP and Dogecoin. He noted that while delays are frustrating, they are part of the SEC’s standard operating procedure when evaluating novel financial products tied to the crypto market.
As the SEC continues to navigate the evolving landscape of cryptocurrency-based financial products, delays in decision-making remain the norm rather than the exception. The agency’s ongoing scrutiny of XRP, Dogecoin, and Ethereum-related ETFs underscores its commitment to regulatory diligence and investor protection. However, with public comment periods now underway and final decisions expected by October, stakeholders across the crypto and financial industries remain cautiously optimistic about eventual approvals.
