SEC delays decisions on several ETFs tied to staking and altcoins
The Securities and Exchange Commission (SEC) delayed decisions on three crypto exchange-traded funds (ETFs) on Sept. 10.
The decisions postponed BlackRock’s Ethereum staking proposal alongside Franklin Templeton’s spot XRP and Solana ETF functions. The delays come because the SEC develops a generic listing framework that would streamline future crypto ETF approvals.
The postponements place these functions for potential approval throughout an anticipated October batch choice window, aligning with earlier predictions.
Bloomberg ETF analyst James Seyffart famous in April that crypto ETFs would seemingly get a batch of approvals in October, when among the over 90 filings attain their remaining deadlines.
Generic framework
The SEC has been working with US exchanges on a standardized itemizing framework for token-based ETFs that may eradicate particular person rule-change requests for qualifying belongings.
The initiative would enable ETF sponsors to bypass the customary Form 19b-4 course of when underlying tokens meet predetermined standards.
Under the proposed framework, sponsors would submit registration statements on Form S-1, observe commonplace 75-day evaluate intervals, and checklist merchandise as soon as the ready intervals have ended.
Market capitalization, on-exchange buying and selling quantity, and day by day liquidity symbolize key metrics underneath dialogue for qualification thresholds. The present rule-change pathway requires every spot crypto ETF to safe a Commission order earlier than itemizing, a course of designed for novel or advanced merchandise.
Moving to standing guidelines for qualifying belongings would shorten timelines and scale back iterative remark cycles between the company and candidates.
Approval jumpstart
Eric Balchunas mentioned on Sept. 9 that the “memecoin ETF period [is] about to kick off” with a Dogecoin ETF slated for launch on Sept. 11 underneath the 40 Act construction.
Balchunas mentioned this might probably change into “the first-ever US ETF to maintain one thing that has no utility on objective,” contemplating Dogecoin was initially created as a tribute to the Doge meme.
A profitable Dogecoin ETF launch may catalyze broader approval momentum for pending functions.
Seyffart beforehand shared that there are 92 crypto ETF applications divided throughout numerous belongings, together with Solana, XRP, Litecoin, and staking variations of current merchandise awaiting SEC decisions.
The complete submitting checklist reveals functions from main issuers, together with VanEck, Grayscale, Canary, Bitwise, and Franklin Templeton, masking belongings starting from established cryptocurrencies to rising tokens.
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