TLDR:
- The SEC has delayed decisions on spot ETF applications for XRP and Dogecoin from 21Shares and Grayscale
- The agency has opened formal review processes to evaluate compliance with regulations designed to prevent fraud and protect investors
- Public comments are being solicited as part of the extended review period
- Bloomberg analyst James Seyffart predicts no approvals before late Q3 or early Q4
- These delays are part of a broader trend of postponed decisions on altcoin ETFs following Bitcoin and Ethereum ETF approvals
The U.S. Securities and Exchange Commission has delayed its decisions on multiple cryptocurrency exchange-traded fund (ETF) applications, pushing back verdicts on both XRP and Dogecoin ETF proposals. The agency announced it needs more time to review applications from 21Shares and Grayscale to determine if they meet regulatory requirements.
The SEC suspended the original May 21-22 decision deadlines to further examine whether the proposals comply with Exchange Act Section 6(b)(5) requirements. These rules focus on preventing fraud and protecting investors in the marketplace.
This move affects three specific ETF applications: the 21Shares XRP spot ETF, the Grayscale Dogecoin spot ETF, and the Grayscale XRP spot ETF. Each would track different price indexes and hold their respective digital assets directly.
Technical Details and Market Context
The 21Shares Core XRP Trust plans to track the CME CF XRP-Dollar Reference Rate and use Coinbase Custody for secure storage of assets. Meanwhile, Grayscale’s proposed funds would follow different benchmarks – the Dogecoin Trust would track CoinDesk’s Dogecoin Price Index, while its XRP Trust would use CoinDesk’s XRP Price Index.
All three ETFs would issue shares in 10,000-share blocks and hold only their respective digital assets. This structure mirrors existing cryptocurrency ETFs that have already received approval.
Bloomberg ETF analyst James Seyffart commented that such delays are routine in the approval process. “If we’re gonna see early approvals from the SEC on any of these assets, I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early Q4,” he stated.
Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days.
If we're gonna see early approvals from the SEC on any of these assets — i wouldn't expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.
— James Seyffart (@JSeyff) May 20, 2025
The SEC has emphasized that initiating these proceedings does not indicate its final position on the applications. The agency is seeking public input as part of its review process, with comments due within 21 days of Federal Register publication and rebuttal submissions due within 35 days.
These delays come as part of a larger pattern affecting altcoin-based ETF proposals. Just a day earlier, the SEC extended deadlines for decisions on several Solana-tracking ETFs from providers including 21Shares, Bitwise, VanEck, and Canary Capital.
The push for altcoin ETFs follows the success of spot Bitcoin ETFs, which have gathered over $126 billion in assets under management according to CoinGlass data. Ethereum ETFs have also launched but with less dramatic inflows than their Bitcoin counterparts.
Multiple asset managers are now seeking to expand the cryptocurrency ETF landscape. Companies including Bitwise, Franklin Templeton, and CoinShares have applied to launch new crypto ETFs covering various digital assets like Litecoin, Cardano, SUI, and Pengu.
Swiss firm 21Shares filed an S-1 form with the SEC last year for its XRP ETF. XRP currently ranks as the fourth largest cryptocurrency by market capitalization. The digital asset was created by the founders of fintech company Ripple, which focuses on improving cross-border transaction speeds.
Grayscale, based in Stamford, Connecticut, filed plans in January to convert its existing Dogecoin Trust into an ETF structure. Dogecoin maintains its position as the eighth largest cryptocurrency by market cap and remains one of the most recognized meme coins in the space.
The SEC’s decisions on these altcoin ETFs will have implications for investor access to cryptocurrency markets through regulated investment vehicles. The agency continues to carefully evaluate each proposal to ensure consumer protection while navigating the evolving digital asset landscape.
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