- The U.S. SEC has delayed its decisions on proposed Dogecoin and XRP ETFs from Grayscale and 21Shares, citing the need for further evaluation and investor protection.
- The delay reflects the SEC’s cautious approach to new crypto investment products.
The U.S. Securities and Exchange Commission (SEC) has once again pushed back its decision on applications for Dogecoin (DOGE) and XRP exchange-traded funds (ETFs). The applications, submitted by Grayscale Investments and 21Shares, respectively, will now face a new deadline in June as the SEC continues to evaluate the proposals. This move signals ongoing regulatory scrutiny within the cryptocurrency space.
Impact and Analysis
The SEC’s decision to postpone rulings on the Dogecoin and XRP ETFs aligns with a broader trend of delayed decisions on crypto-related investment products. The regulator has stated that it requires additional time to assess whether these ETFs meet the requirements to prevent fraud and protect investors, as outlined in the Exchange Act Section 6(b)(5).
The U.S. Securities and Exchange Commission had earlier acknowledged Grayscale’s filings for Dogecoin and XRP exchange-traded funds, officially opening the floor for public comment. This move has fueled optimism among investors, as it signifies the beginning of the regulatory review process that could lead to approval or denial.
Grayscale submitted the filings, 19b-4 forms, via the New York Stock Exchange (NYSE), intending to convert its existing Dogecoin and XRP Trusts into full-fledged ETFs. 21Shares initially filed for its XRP ETF in February, seeking to list the product on the Cboe BZX Exchange. The ETF aims to provide institutional investors with a regulated avenue to gain exposure to XRP.
The new deadline for a decision on the XRP ETF is set for June 17, even though an extension was announced for Grayscale’s Dogecoin ETF. Interestingly, the prices of both Dogecoin and XRP have shown resilience despite the delay.
Currently, XRP is trading at $2.35, up 0.20% in the last 24 hours, while Dogecoin is trading at $0.2271, up 2% in the last 24 hours.
While these cryptocurrencies are subject to market volatility, the potential approval of their respective ETFs remains a significant catalyst. On Monday, the SEC also delayed decisions on Solana ETF applications from Bitwise and 21Shares, indicating a broadened approach to evaluating various altcoin ETFs.
Bloomberg Senior ETF Analyst James Seyffart noted that delays are typical in these situations. He suggested that the SEC generally utilizes the full review period for 19b-4 filings related to ETFs.
Despite the existence of Bitcoin and Ethereum ETFs for over a year, altcoin ETFs are expected to undergo more thorough scrutiny before potential approval.
Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in the next few days. If we’re gonna see early approvals from the SEC on any of these assets, I wouldn’t expect to see them until late June or early July at the absolute earliest. More likely to be in early 4Q.
The recent appointment of Paul Atkins as SEC Chairman has brought renewed optimism to the market. Atkins has emphasized his dedication to creating clearer regulations for the crypto industry, moving away from the prior regulation-by-enforcement method.
His progressive outlook has raised expectations that the SEC will take a more cooperative and supportive role in crypto innovation, potentially opening the door for future ETF approvals.