The Securities and Exchange Commission (SEC) has postponed its decisions on three prominent Cryptocurrency Exchange Transaction Funds (ETFs), pushing the screening deadline to October.
According to a notice filed on August 18th, the new decision dates have been set for October 8th for NYSE Arca’s Truth Social Bitcoin and Ethereum ETFs, October 16th for 21Shares’ and Bitwise’s Solana ETF, and October 19th for the Core XRP Trust.
The Truth Social Bitcoin and Ethereum ETFs, submitted on June 24th, are designed as merchandise-based trusts that directly hold Bitcoin (BTC) and Ether (ETH), issuing shares that are backed by these assets. While they are associated with the social media platform of former US President Donald Trump, they operate similarly to other Bitcoin and ether ETFs in the market.
Additionally, there’s an effort by CBOE BZX to be the first in the US to approve the Solana ETF through submissions from 21Shares and Bitwise. These products are intended to hold Solana (Sol) tokens, giving investors a secure way to access Solana’s price movements.
Another proposal from 21Shares seeks to establish a Core XRP Trust, which aims to hold (XRP) and monitor its market value. This trust was originally filed in February and had recently been revised, nearing its 180-day deadline when the SEC granted an extra 60 days for review.
October Could Be Significant for ETF Decisions
The latest ETF extensions are somewhat unusual. The SEC has issued ETF extensions during the summer, with many of these cases slated for resolution this fall.
In March, Cointelegraph reported that the SEC had deferred its decisions on various Altcoin ETF submissions, including those related to XRP, Litecoin (LTC), and Dogecoin (Doge).
Included among these was a proposal from Coinshares for a Spot Litecoin ETF, which also holds LTC directly and issues token-backed shares. Cointelegraph highlighted that the SEC’s extensions coincided with the same fall examination period for other Altcoin filings.
On another note, the SEC is also reviewing Bitwise’s proposal to allow redemption for its spot Bitcoin and Ethereum ETFs. The upcoming decision, originally set for September, will clarify if investors can directly trade ETF shares for the underlying cryptocurrencies instead of cash.
The SEC frequently uses the entire review period to assess new products and garner public feedback. Bloomberg ETF analyst James Seyfert noted in a May 20 post that the SEC typically utilizes the full time allowed to respond to a filing of 19B-4. He mentioned that nearly all submissions have a final date in October, indicating that early responses are atypical.
Popularity of ETFs Grows with BlackRock Leading the Charge
The US market is expanding with a total of 12 spot Bitcoin ETFs, various ether products, and additional applications for SOL, XRP, and other tokens. Worldwide, there are over 100 crypto-related ETFs currently available.
BlackRock’s iShares Bitcoin Trust dominates the sector, boasting over $87 billion in assets under management (AUM). Its substantial scale, liquidity, and brand recognition help it attract a significant portion of the market flow, while competitors remain on a smaller scale.
