The market for index funds linked to crypto assets in the United States is facing new delays, with the Securities and Exchange Commission (SEC) extending the analysis deadlines for proposals from major funds, reflecting its cautious approach to regulating the sector.
Recognition of TRX staking ETF brings moderate optimism
SEC delays decision on relevant ETFs
Despite the sluggishness, there was a breakthrough with the formal recognition by the SEC of a staking ETF linked to TRX, which brought a moderate signal of optimism to market players.
In a recent document, the SEC informed that it would postpone the decision on the XRP ETF proposed by CoinShares, moving the review to before the second deadline, on May 26. The agency also delayed the analysis of the same manager's request to list and trade shares of its Litecoin fund on the Nasdaq stock exchange.
On the other hand, the regulatory body officially recognized Canary Capital's proposal for an ETF with exposure to TRX through staking, which represents a small advance in the regulatory assessment of new products. This is the first fund with these characteristics to be formally considered by the SEC.
This recognition, however, does not imply immediate approval. Still, it is relevant as it demonstrates that the SEC is open to examining alternative models of ETFs based on digital assets, including those with staking features for generating yield.
Projections indicate approvals only in the fourth quarter
The XRP ETF proposed by CoinShares would exclusively hold XRP and cash reserves, tracking the value of the digital currency while undergoing rigorous regulatory analysis. During this process, the SEC is collecting public comments to assess the product's compliance with the criteria established in the Exchange Act. No definitive decision has been issued so far — only the transition to a deeper stage of formal review.
"As expected, more delays in crypto ETFs arose today. The delays include the XRP ETFs from BitwiseInvest & CoinSharesCo. Delay in the registration of the Litecoin ETF. Delay in the registration of Fidelity's Bitcoin in-kind. On a more positive note: the SEC recognized the registration of TRX in staking from @CanaryFunds," published ETF analyst James Seyffart on X.
The analyst had already indicated that the delays involving spot crypto ETFs were predictable. According to James Seyffart, any approvals from the SEC before the end of June or early July are unlikely. He even outlined a more realistic scenario, projecting possible authorizations only at the beginning of the fourth quarter.
These developments occur amid the extension of deadlines for the evaluation of the 21Shares XRP ETF and Grayscale's Dogecoin fund. The SEC also communicated similar delays for five distinct proposals for Solana-based ETFs, increasing frustration among market participants.
The article 'XRP and Litecoin ETFs face new delays after SEC review' was first seen in BeInCrypto Brazil.
