Grayscale and 21Shares' plans to launch a $DOGE coin and $XRP ETFs product will have to wait until at least June, according to the US SEC.
The US Securities and Exchange Commission (SEC) has delayed Dogecoin and XRP ETF applications from Grayscale Investments and 21 Shares, respectively.
The decision follows a pattern of related delays announced earlier this month as the commission sought additional time to decide on unconventional assets.
While the delay is not an outright denial, it adds to growing speculation about ETFs for both assets.
Dogecoin and XRP ETFs likely
The markets regulator has extended the May 21-22 deadline to further examine whether the proposals meet the requirements of Exchange Act Section 6(b)(5) to prevent fraud and protect investors.
In February, 21 Shares filed for an $XRP ETF product, adding to the growing list of crypto ETF filings in the United States.
This product is intended to be traded on the Cboe BZX exchange and seeks to offer institutional investors indirect exposure to the top coins.
Just like 21 Shares, Grayscale Investments filed for a spot Dogecoin ETF product following the initial DOGE Trust that launched in January.
The US SEC recognized the DOGE ETF filing in March, setting it on the official approval window.
After the latest delay, the regulator plans to make its decision on the XRP ETF on June 17 of this year. A similar decision was made for Grayscale Investments’ Dogecoin ETF.
It is worth noting that despite these delays, the prices of both altcoins have not declined.
As of writing, XRP was changing hands at $2.355, up 1.66% in 24 hours. CoinMarketCap data also showed Dogecoin trading at $0.2264, up 0.75%.
Although both coins remain subject to current market volatility, they could play a role in the upcoming altcoin season.
The prospect of their approval by the US SEC is a key catalyst to watch for both coins.
Crypto ETF approval woes
Earlier this week, the markets regulator delayed its decision on the Solana ETF application from Bitwise and 21Shares. The move confirmed that the commission is not targeting any single asset.
Commenting on the trend, Bloomberg senior ETF analyst James Seifert said that delays on these products are normal.
Despite the near-term date for some XRP approvals, he noted that an early approval would be considered around June.
Analysts said the SEC typically takes its time reviewing and responding to 19b-4 ETF filings.
Despite the fact that Bitcoin and Ethereum ETF products have been around for over a year, altcoin ETFs are expected to require careful consideration before approval.
However, since the confirmation of Paul Atkins as SEC Chairman, confidence in the approval has improved based on his forward-thinking nature.