Simply put
- The SEC postponed decisions on proposed ETFs for XRP and Dogecoin.
- After the previous year’s success with Bitcoin funds, several major asset managers are gearing up to introduce Altcoin ETFs.
- On Monday, the SEC also delayed decisions concerning various Solana tracking funds.
The Securities and Exchange Commission has decided to push back its ruling on a proposed rule change that would permit an ETF by 21Shares tracking XRP prices and another by Grayscale based on Dogecoin, following a recent filing.
“The Commission has implemented procedures that allow for further analysis to determine if the ETFs are structured to prevent fraudulent behaviors and safeguard investors,” the filing indicated.
The CBOE and NYSE, where the 21Shares and Grayscale funds are traded, respectively, made a rule change request earlier this year. The SEC’s delay doesn’t indicate approval or denial for these funds, according to the submission.
The delay is yet another in a string of postponements affecting Altcoin-based ETFs proposed in recent months. On Monday, the SEC pushed back the deadline for determining proposals from 21Shares, Bitwise, VanEck, and Canary Capital that track Solana prices.
These funds form part of a broader push for Altcoin-based offerings since the successful launch of Bitcoin ETFs and the less successful Ethereum funds. Both 21Shares and Grayscale received SEC approval for their Bitcoin and Ethereum funds last year.
Prominent asset managers like Bitwise, Franklin Templeton, and CoinShares are looking to launch new Crypto ETFs aimed at exposing investors to various digital assets, including Litecoin, Cardano, Sui, and Pengu.
Last year, the Swiss firm 21Shares filed an S-1 application with the US SEC to initiate an XRP ETF. XRP is currently the fourth-largest cryptocurrency by market cap and was developed by the creators of Fintech Ripple, which focuses on enhancing cross-border transactions.
Meanwhile, Grayscale, a Connecticut-based crypto asset manager, submitted proposals in January to convert its Grayscale and Dogecoin Trust into ETFs. Dogecoin ranks as the eighth-largest cryptocurrency by market cap.
Data from Coinglass shows that the Spot Bitcoin fund is the most successful in the history of ETFs, managing over $126 billion in assets.
