SEC Delays Decisions on Solana, XRP and Truth Social ETFs

The extensions follow the agency’s pattern of postponements on altcoin-related ETFs this year, and analysts pointed out that the SEC typically takes the full review period before making final decisions. The delays come as demand for crypto ETFs surges, with Ethereum funds breaking records and BlackRock’s iShares Bitcoin Trust keeping up its market dominance.

SEC Postpones ETF Rulings

The US Securities and Exchange Commission (SEC) once again pushed back decisions on several high-profile cryptocurrency exchange-traded fund (ETF) proposals, extending their review deadlines into October. In filings that were made on August 18, the agency set Oct. 8 as the new date to rule on NYSE Arca’s Truth Social Bitcoin and Ethereum ETF, Oct. 16 for Solana ETF applications from 21Shares and Bitwise, and Oct. 19 for the 21Shares Core XRP Trust.

The Truth Social ETF was submitted in June, and is structured as a commodity-based trust holding Bitcoin and Ethereum directly, despite being branded under former President Donald Trump’s social media platform. Meanwhile, 21Shares and Bitwise are seeking approval for what would be the first US spot Solana ETFs. The SEC also extended its review of 21Shares’ Core XRP Trust, which is designed to hold XRP directly.

These delays are consistent with the SEC’s pattern this year. Since March, the regulator postponed decisions on multiple altcoin-related ETFs, including products tied to XRP, Litecoin and Dogecoin. It also extended its review of Bitwise’s request to allow in-kind creations and redemptions for its spot Bitcoin and Ethereum ETFs, with that decision expected in September. 

Analysts noticed that the SEC almost always uses its full extension period to gather feedback before issuing a final ruling. Bloomberg’s James Seyffart said earlier this year that most filings will see final deadlines fall in October.

The cluster of deadlines is set against a backdrop of booming ETF demand. Crypto-related exchange-traded products saw $3.75 billion in inflows this year alone, with Ethereum ETFs recently breaking records. 

BlackRock’s iShares Bitcoin Trust still dominates the market by controlling more than $87 billion in assets under management, dwarfing rivals. Globally, over 100 crypto ETFs are now listed, and the  industry is increasingly intersecting with mainstream financial markets.