The SEC has postponed the submission of 21 Shares for the XRP ETF, even amidst a wave of optimism surrounding recent regulatory developments. This initial delay also extends to at least three AltCoin ETF applications.
Despite this setback, analysts in the ETF space are holding on to the belief that the SEC will eventually greenlight these products. Government processes tend to move slowly, and committees often extend timelines whenever possible.
XRP ETF Faces Another Delay
The XRP ETF has generated significant buzz within the community, especially since the first product of its kind began trading in Brazil last month.
In addition, the CME recently announced XRP futures trading, adding to the excitement. Yet, this optimism can lead to impatience within the community, as evidenced by rampant rumors about premature approvals that spread quickly.
Amidst this positive sentiment, the SEC’s delay persists. Today, the committee postponed the 21Shares XRP ETF application, delaying a decision by at least three weeks.
Along with the 21 Shares XRP products, the SEC has also followed through with the same delay for Grayscale’s Dogecoin products.
Yesterday, the committee also announced delays for five different Solana ETF applications, further adding to the disappointment. Currently, the ETF market is thriving, but the SEC seems to be under increased scrutiny.
So, what’s holding up the approvals? ETF analyst James Seifert addressed these concerns.
“We expect a prolonged wait for a spot Crypto ETF. The array of XRP ETPs has deadlines approaching soon. If we’re lucky enough to see early SEC approvals, it might not happen until late June or early July,” he noted.
He added that the committee tends to take its time, thoroughly reviewing each ETF application. If the SEC isn’t pressed to make a decision on the XRP ETF until October, it’s likely to take its full time.
Coupled with the bureaucratic details surrounding these significant decisions, the SEC also has other broader responsibilities to manage.
After the postponements for the XRP and Dogecoin ETFs, the SEC announced similar delays for two additional Altcoin-related products today. Nonetheless, the prospects for final approval remain relatively high.
Most analysts had previously pointed out that Litecoin might be the first Altcoin ETF to receive approval after Ethereum, mainly because of its clear classification as a commodity. However, the committee had also delayed various Litecoin ETF applications before.
In any case, it seems that both the XRP ETF and the new Altcoin filings will need to brace for lengthy waits. The SEC has signaled some positive intentions regarding crypto ETF regulations.
However, government agencies tend to operate on a different timeline than the fast-paced crypto market. Regardless of market conditions, the committee isn’t rushing.
