Decisions on three crypto-related ETFs were deferred by the regulator, while the filing for a Dogecoin ETF by 21Shares was formally acknowledged.
On May 13, the evaluation of several crypto-related exchange-traded fund (ETF) applications, including those submitted by Grayscale and BlackRock, was postponed by the U.S. Securities and Exchange Commission.
The review timeline has been extended by the agency due to the delays, aligning with projections that no approvals will be issued before the final quarter of 2025.
Grayscale’s proposed spot ETFs for Solana (SOL) and Litecoin (LTC) have been postponed, with the updated filing deadlines set for August 11 and October 10, respectively.
Action on BlackRock’s request to permit in-kind redemptions for its approved spot Bitcoin (BTC) ETF was also postponed by the SEC. No revised deadline has been provided for the request, as it pertains to operational mechanics rather than the original approval.
Separately, the 19b-4 filing for a 21Shares spot Dogecoin (DOGE) ETF was acknowledged by the SEC, thereby initiating the formal review timeline for the proposed product. This action marks the start of the countdown toward a final decision under the agency’s statutory framework.
Final Decisions Anticipated Later in the Year
The agency’s recent actions reflect an ongoing pattern of phased assessments concerning over 70 crypto ETF proposals, which are currently undergoing different stages of evaluation. Decisions on five additional crypto-related ETFs were previously deferred by the SEC on April 29.
The ongoing cycle of delays was characterized as standard procedure by Bloomberg ETF analysts James Seyffart and Eric Balchunas.
The delay was described as “expected” by Seyffart, with most of the impacted products not reaching their final decision deadlines until October at the earliest.
It was noted by Balchunas that substantive approvals are unlikely to be granted by the SEC until internal meetings and strategic discussions are completed by recently confirmed Chair Paul Atkins and his staff.
They’ve been taking outside meetings with people. Probably coming up with a strategy. After that, likely approvals.
He said:
Path Ahead for Crypto Regulation
Decisions on crypto ETF applications by the SEC are made through a multi-phase statutory procedure that is initiated with the publication of proposed rule modifications in the Federal Register.
Review intervals of 45, 90, 180, and 240 days are typically followed by the agency, permitting several opportunities for decision postponements before a final deadline is reached.
The recent measures taken by the regulator are aligned with its established practice of utilizing the complete statutory review periods before rendering final decisions.
A final deadline is not faced by any ETF within this group until late in the third quarter, leaving both applicants and investors in anticipation of greater clarity regarding the regulatory direction for crypto-associated investment products.
