SEC Postpones Decisions on Key Crypto ETF Proposals, Including Ethereum Staking and Solana/XRP Funds

The U.S. Securities and Exchange Commission (SEC) has announced further delays in its decisions regarding several significant cryptocurrency exchange-traded fund (ETF) applications. The postponements affect proposals for Ethereum ETFs that include staking functionalities, as well as separate funds tracking XRP and Solana. These delays indicate the SEC's continued cautious approach to expanding the crypto ETF market beyond Bitcoin.

Key Takeaways

• The SEC has delayed decisions on allowing staking for Ethereum ETFs from major issuers like BlackRock and Fidelity.

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

• These delays are part of a broader pattern of the SEC extending review periods for various crypto ETF applications.

Ethereum ETF Staking Delays

The SEC has extended its review period for rule change requests that would permit staking for Ethereum ETFs issued by prominent asset managers, including BlackRock, Fidelity, and Franklin Templeton. Staking allows holders of proof-of-stake cryptocurrencies like Ethereum to earn rewards by participating in network validation. The agency has not provided a specific timeline for when these staking features might be approved, leaving issuers in limbo.

Solana and XRP Fund Postponements

In addition to the Ethereum ETF decisions, the SEC has also delayed its rulings on Franklin Templeton's proposed spot ETFs for XRP and Solana. These postponements add to a growing list of altcoin-related ETF applications facing extended review processes. Analysts suggest these delays might be strategically timed to align with broader regulatory frameworks for digital asset listings.

Broader Market Implications

These delays are consistent with the SEC's recent pattern of postponing decisions on a wide range of crypto ETF proposals. Bloomberg Intelligence analysts have noted that over 90 crypto ETFs are currently awaiting SEC approval. The expectation among some market observers is that the SEC may wait to finalize generic listing standards for crypto ETFs before approving a wave of new products, potentially including those with staking features and exposure to altcoins like Ethereum, Solana, and XRP.

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, Decrypt.

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

• SEC delays staking for BlackRock spot Ethereum ETF, Crypto Briefing.