New batches of cryptocurrency exchange-traded funds (ETFs) from REX and Osprey have successfully navigated the 75-day review period mandated by the US Securities and Exchange Commission (SEC) and are anticipated to commence trading by the end of the week. Bloomberg Intelligence analyst Eric Balchunas confirmed this development, highlighting that the term “post-effective” indicates the imminent launch of these financial products.
The upcoming lineup features notable entries such as the REX-Osprey Bonk ETF, Trump ETF, Bitcoin ETF, XRP ETF, and Dogecoin ETF. Balchunas mentioned in a phone interview with Cointelegraph that the structure of these funds is essential for their path to market. Specifically, the Dogecoin ETF is expected to launch on Thursday, though its exact timing is contingent upon its categorization under the Investment Company Act of 1940. Unlike funds filed under the Securities Act of 1933—previously used for spot Bitcoin ETF approvals—the 1940 Act funds present a less complex route to market.
“This is a ’40 Act fund, which does not directly invest entirely in spot assets,” Balchunas explained. “Provided the SEC does not issue any last-minute objections, the funds can go live 75 days post-filing.” Most ETFs in the United States are structured under the 1940 Act, allowing them to operate as open-end investment companies that invest in various securities—often including futures-based funds.
In contrast, the 1933 Act ETFs typically pertain to physically backed commodities, such as spot Bitcoin and gold. According to Bloomberg ETF analyst James Seyffart, there are currently 92 crypto exchange-traded products awaiting approval in the US, underscoring the growing interest in this sector.
Despite the positive news for REX and Osprey, the SEC has postponed its decisions on several high-profile ETF applications from major investment firms, including Franklin Templeton, BlackRock, and Fidelity. In notices published recently, the SEC indicated that additional time is needed to review proposals that involve the use of staking for Ether within these funds. The agency also delayed decisions on applications concerning XRP and Solana ETFs.
Earlier this week, the SEC pushed back its ruling on Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF, establishing a new deadline of November 12 for these decisions. This latest wave of delays follows a recent SEC clarification that certain liquid staking activities do not fall under securities law, thus exempting them from the SEC’s regulatory scrutiny. Additionally, the agency affirmed in May that proof-of-stake blockchains themselves do not qualify as securities.
This evolving landscape of cryptocurrency ETF approvals continues to reflect the growing intersection of traditional finance and digital assets, as market participants and regulators alike navigate the complexities of this burgeoning field.
