The Securities and Exchange Commission delays decisions on the proposed XRP and Litecoin ETFs from CoinShares, postponing reviews until May 26.
Incremental progress as the Securities and Exchange Commission formally recognizes the locked TRX ETF offering from Canary Funds, generating optimism.
Analyst predicts that cryptocurrency ETF approvals are unlikely before late June, with expectations set for early fourth quarter.
The cryptocurrency ETF market in the United States faces new delays as the SEC extends reviews for major digital asset funds, indicating its measured approach to regulation.
Meanwhile, there seems to be incremental progress with the SEC's official recognition of a new TRX staking ETF, introducing cautious optimism for industry stakeholders.
In a recent SEC document, the Commission announced that it would postpone its decision on the proposed CoinShares XRP ETF, bringing the review ahead of its second deadline on May 26. Additionally, the agency has delayed its ruling on CoinShares' application to list and trade shares of its Litecoin ETF on the Nasdaq exchange.
However, it officially recognized the product offering from Canary Capital that provides exposure to locked TRX, indicating slight progress in the regulatory process. This would be the first exchange-traded fund to offer exposure to TRX with staking features.
This formal recognition is not an immediate approval. Still, it is significant because it indicates that the SEC is willing to evaluate new types of digital asset ETFs, including those that incorporate staking for yield. The CoinShares XRP ETF would exclusively hold XRP and cash, tracking the token's value while undergoing thorough regulatory scrutiny.
During this review, the SEC is inviting public comments to determine compliance with the Exchange Act requirements. No approval or disapproval has been issued, just a deeper move towards formal review:
The analyst previously noted that delays were expected for spot cryptocurrency ETFs. According to Seyffart, it is unlikely that any potential early approval from the SEC will materialize before late June or early July. He even established a more realistic timeline for approvals, aiming for early fourth quarter.
Recent developments come as the 21Shares XRP ETF and Grayscale's Dogecoin ETF face extended timelines. The Commission also announced similar delays for five different recently proposed Solana ETFs, adding to the disappointment.