SEC Delays XRP and Dogecoin ETF Decisions

• SEC delays decision on XRP and Dogecoin ETFs from 21Shares and Grayscale.
• More altcoin ETF applications are in the pipeline after the Bitcoin ETF’s success.
• SEC seeking further analysis to protect investors from market risks.

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on rule changes that would allow for the trading of proposed exchange-traded funds (ETFs) tracking XRP and Dogecoin, two of the world’s largest cryptocurrencies by market cap.

The decision affects filings by 21Shares, which proposed an XRP ETF, and Grayscale, which is looking to convert its Dogecoin Trust into an ETF. Both proposals were submitted earlier this year through major exchanges Cboe and NYSE, respectively.

According to filings published Tuesday, the SEC has initiated proceedings to gather additional input and assess whether these altcoin-based ETFs meet necessary regulatory standards. Specifically, the Commission wants to determine whether the funds adhere to exchange rules designed to prevent fraudulent and manipulative acts and to protect investors.

Altcoin ETFs in Regulatory Limbo

This is not the first time the SEC has delayed decisions on crypto-based ETFs. Just a day prior, on Monday, the Commission also extended its review of proposals for Solana ETFs submitted by 21Shares, Bitwise, VanEck, and Canary Capital.

The postponements come amid a broader wave of applications by leading asset managers hoping to ride the momentum of Bitcoin ETFs, which have proven to be among the most successful ETF products in history. Bitcoin spot ETFs currently manage over $126 billion in assets, according to CoinGlass data.

Following that success, issuers have turned their attention to other digital assets, including Ethereum, Litecoin, Cardano, SUI, and even lesser-known tokens like Pengu. The market’s enthusiasm is clear, but the SEC remains cautious.

The filing delay does not imply rejection, the SEC clarified. The additional time is intended for further market analysis and input from stakeholders.

A Look at the Issuers and Cryptocurrencies Involved

• 21Shares, a Swiss-based investment firm, submitted its S-1 filing to launch an XRP ETF last year. XRP, issued by Ripple Labs, is known for its focus on cross-border payments and currently ranks as the fourth-largest cryptocurrency by market capitalization.
• Based in Stamford, Connecticut, Grayscale filed plans in January to convert its existing Dogecoin Trust into an ETF. The meme-based cryptocurrency is the eighth-largest crypto asset and enjoys significant popularity among retail investors.

Both 21Shares and Grayscale already offer Bitcoin and Ethereum funds that were approved by the SEC last year, giving them a proven track record in the crypto ETF space.

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