The SEC has postponed decisions on the XRP and DOGE ETFs, now scheduled for June. This delay highlights the growing backlog of crypto ETF applications, with industry watchers awaiting the final ruling.
SEC Has Extended the Review Periods for XRP and DOGE ETFs
The SEC has announced delays on two crypto ETFs in the U.S. The delays include Franklin Templeton’s XRP ETF and Bitwise’s Dogecoin ETF. The SEC demonstrates its lack of urgency by postponing its decision on several Bitcoin ETF applications until June 2025.
Franklin Templeton’s XRP ETF, which was submitted via the Cboe BZX Exchange, was previously expected to be decided in early May. However, the SEC has now pushed the deadline to June 17, extending the review period by an additional 45 days. The Dogecoin ETF of Bitwise, which was filed through NYSE Arca, will now be reviewed no earlier than 15 June.
A Growing Backlog of Altcoin ETF Applications
The SEC receives more than 70 proposals for altcoin ETF approvals, and therefore, the two delays are coming up together. The uses are in wide-ranging digital assets, including Solana, Litecoin, and Hedera, among others. Even with a big influx of applications, the SEC seems to be sticking to its timelines instead of rushing out approvals or rejections, like what we saw during the approval for Bitcoin and Ethereum ETFs, which eventually got greenlit.
ETF analysts say this kind of delay is normal and does not mean someone is against it. Experts say that the extended review periods created by the SEC are a signal of their commitment to carrying out a thorough evaluation process, especially given the complicated nature of altcoin-based financial products.
Market Reaction and Investor Sentiment
The announcement made had both positive and negative reactions in the crypto market. Some cryptocurrency enthusiasts believe that the delay will only prevent altcoins from gaining legitimacy through ETFs. Others think that the approval will happen as the regulations mature.
After hearing the news, the price of XRP dipped slightly due to the uncertainty surrounding the event. Dogecoin prices remained steady, yet traders stayed cautious about volatile price action as the June deadlines approached.
According to the experts, these delays appear to be procedural rather than punitive. This aligns with the SEC’s history of caution regarding new products associated with crypto. We observed two approval processes for the Bitcoin ETF and Ethereum ETF, both of which took a similar amount of time to succeed. Moreover, they were eventually approved too.
Implications for the Future of Altcoin ETFs
It’s getting competitive and a lot of fun of late, with ETF competition for crypto assets picking up. Those who follow these things are keeping an eye on what’s going on. The outcome could alter how people in traditional finance use altcoins.
If approved, these ETFs, or exchange-traded funds, could facilitate the entry of institutions into altcoins by making it easy for retail and institutional investors to invest via regulations. On the other hand, extra delays or rejections could spoil the short-term enthusiasm because it’s difficult to integrate them.
Right now, everyone is looking at the SEC as it navigates through this complex situation. The outcome for these ETFs, either approval or further scrutiny, will be a key determinant of altcoin investments that could be influenced by these ETFs and the overall integration of cryptos in the mainstream.
