The U.S. Securities and Exchange Commission has delayed its ruling on the Bitcoin and Ethereum ETFs of Truth Social, the Solana ETFs from 21Shares and Bitwise, and the 21Shares Core XRP Trust.
This delay continues the SEC's pattern of postponing approvals for altcoin-related ETFs this year. Analysts point out that the SEC typically conducts a full review before making a final decision. This delay comes amid a surge in demand for cryptocurrency ETFs, with Ethereum funds setting records and BlackRock's iShares Bitcoin Trust maintaining its market dominance.
SEC delays ETF ruling
The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on several high-profile cryptocurrency exchange-traded fund (ETF) proposals, extending its review deadlines to October. In a filing submitted on August 18, the agency set October 8 as the new approval date for the Truth Social Bitcoin and Ethereum ETFs on the New York Stock Exchange Arca, October 16 for the Solana ETF applications from 21Shares and Bitwise, and October 19 for the approval date of the 21Shares Core XRP Trust.
The Truth Social ETF was submitted in June and is structured as a commodity trust directly holding Bitcoin and Ethereum, although it brands the social media platform of former President Donald Trump. Meanwhile, 21Shares and Bitwise are seeking approval for what would be the first spot Solana ETFs in the U.S. The SEC also extended its review of the 21Shares Core XRP Trust, which aims to directly hold XRP.
These delays are consistent with the pattern of the U.S. Securities and Exchange Commission (SEC) this year. Since March, the regulator has postponed decisions on several altcoin-related ETFs, including products linked to XRP, Litecoin, and Dogecoin. The SEC also extended its review of the Bitwise application, allowing for the physical creation and redemption of its spot Bitcoin and Ethereum ETFs, with a decision expected in September.
Analysts note that the SEC almost always uses the entire extension period to gather feedback before issuing a final ruling. Bloomberg's James Seyffart indicated earlier this year that the final deadlines for most applications will be in October.
Against the backdrop of strong demand for ETFs, these deadlines are coming in quick succession. In just this year alone, cryptocurrency-related exchange-traded products have attracted $3.75 billion in inflows, with the Ethereum ETF recently setting a record.
BlackRock's iShares Bitcoin Trust continues to dominate the market, managing over $87 billion in assets, far surpassing its competitors. Globally, there are currently over 100 cryptocurrency ETFs listed, with the cryptocurrency industry increasingly intertwined with mainstream financial markets.
