SEC delays decisions on several ETFs tied to staking and altcoins

The Securities and Exchange Commission (SEC) delayed decisions connected 3 crypto exchange-traded funds (ETFs) connected Sept. 10.

The decisions postponed BlackRock’s Ethereum staking connection alongside Franklin Templeton’s spot XRP and Solana ETF applications. The delays travel arsenic the SEC develops a generic listing framework that could streamline aboriginal crypto ETF approvals.

The postponements presumption these applications for imaginable support during an anticipated October batch determination window, aligning with erstwhile predictions.

Bloomberg ETF expert James Seyffart noted successful April that crypto ETFs would apt get a batch of approvals successful October, erstwhile immoderate of the implicit 90 filings scope their last deadlines.

Generic framework

The SEC has been moving with US exchanges connected a standardized listing model for token-based ETFs that would destruct idiosyncratic rule-change requests for qualifying assets.

The inaugural would let ETF sponsors to bypass the customary Form 19b-4 process erstwhile underlying tokens conscionable predetermined criteria.

Under the projected framework, sponsors would taxable registration statements connected Form S-1, observe modular 75-day reappraisal periods, and database products erstwhile the waiting periods person ended.

Market capitalization, on-exchange trading volume, and regular liquidity correspond cardinal metrics nether treatment for qualification thresholds. The existent rule-change pathway requires each spot crypto ETF to unafraid a Commission bid earlier listing, a process designed for caller oregon analyzable products.

Moving to lasting rules for qualifying assets would shorten timelines and trim iterative remark cycles betwixt the bureau and applicants.

Approval jumpstart

Eric Balchunas said connected Sept. 9 that the “memecoin ETF epoch [is] astir to footwear off” with a Dogecoin ETF slated for motorboat connected Sept. 11 nether the 40 Act structure.

Balchunas said this could perchance go “the first-ever US ETF to clasp thing that has nary inferior connected purpose,” considering Dogecoin was primitively created arsenic a tribute to the Doge meme.

A palmy Dogecoin ETF motorboat could catalyze broader support momentum for pending applications.

Seyffart antecedently shared that determination are 92 crypto ETF applications divided crossed assorted assets, including Solana, XRP, Litecoin, and staking versions of existing products awaiting SEC decisions.

The broad filing database reveals applications from large issuers, including VanEck, Grayscale, Canary, Bitwise, and Franklin Templeton, covering assets ranging from established cryptocurrencies to emerging tokens.

The station SEC delays decisions connected respective ETFs tied to staking and altcoins appeared archetypal connected CryptoSlate.