SEC Delays Decisions on Key Crypto ETFs, Including Ethereum Staking and XRP/Solana Funds

The U.S. Securities and Exchange Commission (SEC) has once again postponed decisions on several significant cryptocurrency-related exchange-traded fund (ETF) proposals. The delays affect applications for Ethereum ETFs that would allow staking, as well as proposed funds tracking XRP and Solana, signaling continued caution from the regulatory body.

Key Takeaways

• The SEC has extended review periods for Ethereum ETFs seeking to incorporate staking features from major issuers like BlackRock and Fidelity.

• Proposals for Solana and XRP-based ETFs from Franklin Templeton have also been delayed.

• These postponements align with the SEC's recent pattern of delaying decisions on altcoin-related ETF applications.

Ethereum ETF Staking Delays

The SEC has extended its review period for rule change requests that would permit staking for Ethereum ETFs. This includes applications from prominent financial institutions such as BlackRock, Fidelity, and Franklin Templeton. The agency stated it requires more time to thoroughly review these proposals, which aim to allow investors to earn rewards through staking their staked Ether within the ETFs.

This move follows earlier delays on similar requests, including one for Grayscale's Ethereum ETF. The interest in allowing staking for Ethereum ETFs surged after the SEC's Division of Corporation Finance indicated in May that certain blockchain staking activities might not be considered securities offerings.

XRP and Solana Fund Postponements

In addition to the Ethereum-related delays, the SEC has also postponed decisions on Franklin Templeton's proposed spot XRP and Solana ETFs. These applications, initially filed in March, will now face a longer review process. This is part of a broader trend where the SEC has delayed rulings on numerous altcoin-based ETF applications in recent weeks.

Several other firms, including Bitwise, Grayscale, VanEck, and 21Shares, have also filed for Solana ETFs, indicating significant market interest in products offering exposure to the cryptocurrency. Analysts suggest these delays are strategic, potentially waiting for the finalization of broader listing standards for crypto ETFs before approving a wave of new products.

Broader ETF Landscape

According to industry analysts, over 90 crypto ETF applications are currently awaiting SEC approval. The SEC's approach of delaying decisions on altcoin-related products, while potentially approving Bitcoin ETFs, reflects a cautious regulatory stance. However, many anticipate that once generic listing standards are established, a significant number of these pending applications, including those for Ethereum staking and XRP/Solana ETFs, could receive approval in the coming months.

Sources

• SEC delays decisions on staking for Ethereum ETFs, along with XRP and SOL funds, The Block.

• SEC Punts on BlackRock Ethereum ETF Staking, Franklin XRP and Solana Fund Decisions, Yahoo Finance.