SEC delays the launch of exchange-traded funds based on XRP and DOGE

What’s new? The US Securities and Exchange Commission (SEC) has postponed decisions on 21Shares and Grayscale’s applications to launch exchange-traded funds (ETFs) based on fintech company Ripple’s XRP token and Dogecoin (DOGE), the largest meme coin. On May 20, officials requested public comment on the 21Shares Core XRP Trust, Grayscale XRP Trust, and Grayscale Dogecoin Trust products. The SEC clarified that the move will allow it to collect comments from interested parties.

Material by The Block

What else is known? On the same day, the SEC postponed a decision on the application of investment company Bitwise regarding its Ethereum-based spot fund, which was launched last July and trades under the ticker ETHW on the NYSE exchange. The company has asked officials to allow ETH coins purchased on behalf of customers to be placed in staking to generate additional yield.

Grayscale: ETH-based spot funds lost $61 million due to the staking ban

The company asked the SEC’s cryptocurrency task force to allow asset staking on behalf of investors

Read more

Over the past few months, the SEC has repeatedly delayed decisions and sought comments on a number of applications for cryptocurrency ETFs that have become more active since the arrival of Donald Trump’s administration.

Under Biden, the SEC only approved crypto ETFs based on the largest assets — bitcoin and Ethereum — and it happened after losing a lawsuit against Grayscale, which had been pushing for several years to launch a bitcoin investment product.

US-based pharmaceutical firm Wellgistics will add payments in XRP and start accumulating the asset on its balance sheet

The company has opened a $50 million line of credit for this purpose

Read more

Since Trump took office in January, the SEC has withdrawn several lawsuits against crypto companies. It has begun holding regular public roundtables to discuss ways to regulate the digital asset industry.

Bloomberg analyst James Seyffart said in a post on X that delays by the SEC regarding spot cryptocurrency ETFs are the norm:

“I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.”

Sourceс: X.com

Seyffart also noted that regardless of guidance and current policy, the SEC does not approve filings prematurely. Thus, under the rules, after filings are made, the SEC has a limited amount of time to make a final determination and provide a response to the companies.

“Almost all of these filings have final due dates in October. Early decisions would the action that’s out of the norm. No matter how 'Crypto-friendly; this SEC is,” Seyffart explained.