The U.S. Securities and Exchange Commission (SEC) has announced an extension for the review period of various cryptocurrency exchange-traded funds (ETFs), including proposals for staking in Ethereum ETFs as well as ETFs for XRP and Dogecoin. This decision pushes the commission’s timeline for determining the suitability of these funds further into the future.
In an official release, the SEC clarified that it deemed it appropriate to allocate additional time to consider the proposed changes regarding staking in BlackRock’s Ethereum ETF. The agency emphasized the necessity of a thorough examination of the issues at hand before making a final ruling. The extended deadline for this review is now set for October 30.
The commission’s decision mirrors a similar extension for staking proposals submitted by Fidelity and Franklin Templeton for their own Ethereum ETFs, with the final deadline for these funds set for November 13. Other entities such as Grayscale and 21Shares have also filed for Ethereum ETF staking, with their deadlines on October 23 and October 29, respectively. This sequence raises the possibility that the SEC could greenlight staking for certain Ethereum ETFs as early as October 23, reminiscent of last year’s simultaneous approvals for multiple funds.
The SEC’s extension also prompted discussions about the implications of staking activities. The commission has already clarified that staking does not qualify as a security, which could bode well for these proposed funds. Allowing staking would enable investors to earn yields while gaining direct exposure to Ethereum, potentially driving interest and participation in the market.
In addition to Ethereum ETFs, the SEC has also postponed decisions regarding Franklin Templeton’s XRP ETF and Bitwise’s Dogecoin ETF, as the commission requires more time to evaluate the proposed rule changes for these funds. The new deadline for a decision on the XRP ETF is now November 14, following similar delays for other XRP ETF applications from various issuers, including Grayscale and CoinShares. Grayscale’s XRP ETF deadline is scheduled for October 18.
Likewise, Bitwise’s Dogecoin ETF has a review deadline extended to November 12, while Grayscale’s DOGE ETF also has a deadline of October 18. Investors and stakeholders anticipate the SEC’s evaluations as they could significantly impact the cryptocurrency market and investor engagement going forward.
