SEC Delays Decisions on Several ETFs Tied to Staking and Altcoins
The Securities and Exchange Commission (SEC) has delayed decisions on three crypto exchange-traded funds (ETFs), including Blackrock’s Ethereum proposal, Franklin Templeton’s Spot XRP, and Solana ETF applications. This delay comes as the SEC works on developing a generic listing framework for token-based ETFs, which could simplify future crypto ETF registrations. The framework aims to eliminate individual rule changes for qualified assets, allowing ETF sponsors to avoid the usual 19B-4 process form if the underlying tokens meet specific criteria.
According to James Seyffart, an analyst at Bloomberg ETF, crypto ETFs are likely to receive a number of permits in October, as some of the over 90 submissions reach their final deadlines. The SEC’s generic framework would enable ETF sponsors to submit registration statements in Form S-1, which would be subject to 75-day review periods, and list products as soon as the waiting periods have ended. Market capitalization, trade volume, and daily liquidity are key metrics for qualification thresholds.
Generic Framework for Crypto ETFs
The SEC’s initiative to develop a standardized framework for token-based ETFs could reduce the iterative comment cycles between the agency and applicants, shortening the review process. If the SEC adopts constant rules for asset qualification, the schedules would be shortened, and the agency could process applications more efficiently. This framework would also allow ETF sponsors to list products more quickly, potentially catalyzing a broader admission dynamics for outstanding applications.
Eric Balchunas noted that a successful start of a Dogecoin ETF could be a significant development, considering that Dogecoin was originally created as a tribute to the Doge meme. A Dogecoin ETF could potentially be the first US ETF to track an asset that is not intentionally useful, which could have implications for the broader crypto market. Seyffart previously announced that there are 92 crypto ETF applications, covering various assets, including Solana, XRP, Litecoin, and the discontinuation of existing products, waiting for second decisions.
Implications for the Crypto Market
The SEC’s delay in deciding on the ETF applications has shifted the focus to a possible approval window in October. The comprehensive registration list includes proposals from large issuers, such as Vaneck, Graustufen, Canaria, Bit, and Franklin Templeton, covering assets that range from established cryptocurrencies to emerging tokens. As the SEC works on developing a generic framework for crypto ETFs, market participants are eagerly awaiting the outcome, which could have significant implications for the broader crypto market.
For more information on the SEC’s delay and the developments in the crypto ETF market, please visit https://cryptoslate.com/sec-delays-decisions-on-several-etfs-tied-to-staking-and-altcoins/.
