Crucial SEC Delays Decisions on XRP, DOGE ETFs

For investors keenly watching the cryptocurrency market, news from the SEC often holds significant weight. The latest update involves proposed exchange-traded funds (ETFs) tracking popular digital assets like XRP and DOGE. The U.S. Securities and Exchange Commission has just announced it is pushing back its deadlines for deciding on these specific Altcoin ETF proposals, adding another layer of anticipation to the regulatory process.

What Did the SEC Decide on XRP and DOGE ETFs?

The SEC has formally postponed its decisions regarding two key cryptocurrency ETF applications. These filings, submitted by NYSE Arca and Cboe BZX Exchange back in March, sought permission to list funds holding Dogecoin and XRP.

• Bitwise’s proposed DOGE ETF, intended for listing on NYSE Arca.
• Franklin Templeton’s proposed XRP ETF, intended for listing on Cboe BZX Exchange.

According to regulatory filings, the new deadline for the SEC‘s ruling on both proposals is now in June. This delay provides the regulator with more time to review the complexities and potential implications of allowing these specific Altcoin funds onto traditional exchanges.

Why the Delay? The Context of Altcoin ETF Filings

The postponement of the XRP and DOGE ETF decisions comes amid a significant surge in applications for various Altcoin ETFs in 2024. The SEC is currently reviewing dozens of proposals beyond just Bitcoin and Ethereum, covering a wide spectrum of digital assets.

Bloomberg analyst Eric Balchunas highlighted the sheer volume, noting that applications cover everything from major tokens like XRP, Litecoin, and Solana to more niche or meme coins like Penguins and DOGE. As of late April, approximately 70 crypto ETFs were reportedly awaiting the SEC‘s review.

This deluge of filings suggests growing interest from asset managers in bringing crypto exposure to traditional investors through familiar wrapper products like ETFs. However, the regulatory landscape remains cautious, particularly concerning assets other than the established giants like Bitcoin and Ether.

Market Sentiment and Regulatory Posture

While the interest in Altcoin ETFs is evident from the number of filings, analysts caution that investor demand for funds holding assets like XRP or DOGE might not be as robust as for Bitcoin or Ether ETFs. As one analyst put it, getting an ETF listed is like getting a song on streaming services – it makes it accessible, but doesn’t guarantee popularity.

Dogecoin, currently the largest memecoin, boasts a market capitalization of around $26 billion. XRP, the native token of the XRP Ledger, has a market cap of approximately $133 billion (data as of April 29).

Simultaneously, while exchanges like Nasdaq are proposing listings for funds like a 21Shares DOGE ETF, they are also urging the SEC to maintain a strict regulatory stance. Nasdaq recently commented that digital assets should be held to the same compliance standards as traditional securities if they function similarly.

What’s Next for XRP, DOGE, and Other Altcoin ETFs?

The SEC‘s decision to delay on XRP and DOGE ETFs is a common step in the regulatory review process, allowing them more time for consideration. It does not necessarily indicate an eventual rejection, but it does prolong the uncertainty for these specific funds and the broader Altcoin ETF market.

Investors and the crypto community will now await the June deadlines for updates on the Bitwise Dogecoin and Franklin Templeton XRP proposals. The outcomes of these decisions could set precedents for the numerous other Altcoin ETF applications currently under review by the SEC.

Summary

The U.S. SEC has officially postponed its decisions on proposed ETFs holding XRP and DOGE, pushing the review deadlines to June. This move affects applications from Bitwise and Franklin Templeton, coming at a time when the regulator is reviewing a large number of Altcoin ETF proposals. While asset managers are eager to launch diverse crypto funds, the SEC maintains a cautious approach, and market demand for these specific Altcoin ETFs remains a key factor to watch. The regulatory path for bringing a wide range of digital assets into traditional finance via ETFs continues to unfold, with these delays being a notable step along the way.