The US Securities and Exchange Commission (SEC) has deferred decisions on three prominent cryptocurrency exchange-traded funds (ETFs), extending their review deadlines into October. This move underscores the agency’s cautious approach in evaluating new financial products in the rapidly evolving crypto sector.
Upcoming Decisions on Notable Crypto ETFs
In notices filed on August 18, the SEC established new decision dates: October 8 for NYSE Arca’s Truth Social Bitcoin and Ethereum ETF, October 16 for 21Shares’ and Bitwise’s Solana ETFs, and October 19 for the 21Shares Core XRP Trust.
The Truth Social Bitcoin and Ethereum ETF, filed on June 24, is designed as a commodity-based trust, directly holding Bitcoin (BTC) and Ether (ETH) and issuing shares backed by these assets. Despite being associated with US President Donald Trump’s Truth Social platform, it functions similarly to existing spot Bitcoin and Ether ETFs.
Additionally, Cboe BZX is seeking approval for the first US spot Solana ETFs through proposals from 21Shares and Bitwise. These ETFs aim to hold Solana (SOL) tokens, offering investors a secure way to tap into Solana’s price movements.
Another application from 21Shares targets the launch of the Core XRP Trust, structured to hold XRP and mirror its market value. Initially filed in February and later amended, the trust was nearing its 180-day review period when the SEC opted for an additional 60-day extension.
October: A Pivotal Month for ETF Rulings
The recent ETF extensions align with the SEC’s general practice of taking its time for comprehensive evaluations. The agency has been methodically extending ETF reviews throughout the summer, setting up a slew of decisions this fall.
Earlier this year, Cointelegraph highlighted the SEC’s postponement of decisions on multiple altcoin ETF applications, including those linked to XRP, Litecoin (LTC), and Dogecoin (DOGE). Among these is CoinShares’ proposal for a spot Litecoin ETF, which would hold LTC directly. Cointelegraph reported that this extension placed its decision in the same timeframe as other altcoin ETF proposals scheduled for fall reviews.
The SEC is also reviewing Bitwise’s request to permit in-kind creations and redemptions for its spot Bitcoin and Ethereum ETFs, with a decision expected in September. This ruling could allow investors to exchange ETF shares directly for the underlying cryptocurrency, rather than cash.
Bloomberg ETF analyst James Seyffart noted in a May 20 post on X that the SEC “typically takes the full time to respond to a 19b‑4 filing,” with most filings having final due dates in October. An early decision would be considered “out of the norm.”
Continued Growth and Dominance in the Crypto ETF Market
The US market now includes a dozen spot Bitcoin ETFs, several Ether products, and an increasing array of applications for SOL, XRP, and other tokens. Globally, there are over a hundred crypto-related ETFs available.
BlackRock’s iShares Bitcoin Trust leads the sector, boasting more than $87 billion in assets under management (AUM). Its prominence is attributed to its scale, liquidity, and brand reputation, which have attracted the majority of capital inflows, overshadowing smaller competitors.
For more information, visit the source: Cointelegraph.
