The Securities and Exchange Commission has once again postponed decisions on cryptocurrency exchange-traded funds, this time delaying rulings on both Bitwise’s Dogecoin ETFs and Franklin Templeton’s XRP product until mid-June.
These delays, announced on Tuesday, add to the growing backlog of crypto-related financial products awaiting regulatory approval.
ETF Waiting Game Continues
The postponements affect not only Dogecoin and XRP funds but also several other altcoin ETF proposals, including Franklin Templeton’s Solana ETF, ProShares XRP ETF, and Grayscale’s HBAR ETF.
Additionally, the SEC has delayed decisions on proposed rule changes regarding staking for Franklin and Fidelity’s Ethereum ETF, along with in-kind creation and redemption mechanisms for Invesco Galaxy’s Bitcoin and Ethereum ETFs.
These filings respond to March proposals from major exchanges NYSE Arca and Cboe BZX Exchange. Coincidentally, Nasdaq submitted a request on the same day seeking permission to list a 21Shares Dogecoin ETF, further crowding the regulatory pipeline.
New Crypto Climate
The cryptocurrency investment landscape has dramatically shifted following the successful launch of Bitcoin ETFs last year. Asset managers, emboldened by this breakthrough and the crypto-friendly stance of President Trump’s administration, have flooded the SEC with proposals for alternative cryptocurrency funds.
As of late April, approximately 70 crypto ETFs were awaiting the SEC’s review, covering everything from established altcoins like XRP, Litecoin, and Solana to more niche offerings.
The surge in ETF applications reflects a broader transformation in how traditional finance views digital assets. What was once considered a fringe investment has now captured the attention of Wall Street’s biggest players, with BlackRock, Fidelity, and other institutional giants actively developing crypto investment products.
This mainstreaming of cryptocurrency investments represents a significant evolution from the industry’s early days and suggests growing confidence in the long-term viability of blockchain-based assets despite their inherent volatility.
Despite this enthusiasm from fund managers, analysts caution that investor interest in altcoin ETFs may not match the demand seen for Bitcoin and Ethereum products. The market capitalization figures highlight this disparity – while Dogecoin sits at approximately $26 billion and XRP at around $133 billion, these pale in comparison to Bitcoin’s and Ethereum’s valuations.
An interesting tension exists in the regulatory environment as exchanges themselves push for crypto adoption while simultaneously advocating for strict oversight. In a recent comment letter, Nasdaq encouraged the SEC to apply the same compliance standards to digital assets as traditional securities if they effectively function as “stocks by any other name.”
As June approaches, the cryptocurrency industry watches closely to see whether these delays signal thoughtful consideration or continued reluctance from the SEC to fully embrace the rapidly evolving digital asset landscape. Further delays or rejections could dampen the optimism in the industry, although many remain hopeful for more favorable decisions under new SEC leadership.
