The U.S. Securities and Exchange Commission (SEC) has announced a series of delays regarding key cryptocurrency-related proposals, significantly affecting several high-profile funds. The deadline for the BlackRock iShares Ethereum Trust, which seeks to incorporate staking, has been pushed back to October 30, representing a 45-day extension. Additionally, the SEC has deferred its decision on Franklin Templeton’s proposals for separate funds aimed at tracking the performance of Solana and XRP by 60 days to November 14.
These delays reflect a broader trend within the SEC, which has recently postponed various decisions on rule change requests tied to the listing of alternative cryptocurrency funds. This pattern comes at a time when the financial market is closely monitoring the evolving regulatory landscape for digital assets.
In its latest filings, the SEC also rescheduled its decision regarding Nasdaq’s proposal for the Grayscale Hedera Trust to November 12, also a 60-day delay. Moreover, last month, the SEC held off on a request to introduce staking capabilities to the 21Shares Core Ethereum ETF and postponed ruling on an application from Donald Trump’s media and technology company for a Bitcoin and Ethereum ETF until October 8.
Further complicating the landscape, the SEC announced identical delays for spot XRP funds proposed by several major financial firms, including Grayscale, CoinShares, and Bitwise, alongside a spot Dogecoin ETF and a LiteCoin product.
These developments come following previous delays concerning Solana ETFs from various firms and a backlog of 90 crypto ETF applications the SEC was examining before the end of August. Eric Balchunas, a Senior ETF Analyst at Bloomberg, analyzed the current situation, suggesting that the SEC appears to be delaying approvals for altcoin ETFs and Ethereum staking until it has finalized its review of proposals submitted in July by exchanges including Cboe and NYSE.
These proposals aim to change the listing standards, potentially permitting certain cryptocurrency ETFs to be listed automatically without a stringent evaluation process, which could considerably shorten the approval timeline. The current framework allows for a review process that can extend up to 240 days.
Balchunas expressed the expectation that the SEC would continue to defer decisions until these revised listing standards are established, likely in early October. After that, he anticipates a substantial influx of ETF approvals, including those related to Ethereum staking. Despite these delays, he noted a high likelihood of success for Solana and XRP ETFs, as well as for staking approvals.
The ongoing scrutiny and regulatory uncertainty surrounding cryptocurrency products continue to be a central theme for market participants, as the SEC navigates its role in overseeing this rapidly evolving financial landscape.
