The SEC delays 21Shares’ XRP ETF filing and three other altcoin ETF bids, dampening optimism despite recent regulatory progress.
However, ETF analysts are optimistic that the SEC will authorize these products. The Commission generally delays whenever feasible, as government institutions operate sluggishly.
The XRP ETF has been postponed once more
The XRP ETF is the subject of substantial community excitement, as the world’s first such product was successfully traded in Brazil last month.
Yesterday, the CME also implemented XRP Futures trading, which bolsters enthusiasm. Nevertheless, this anticipation can also lead to community impatience, as evidenced by the rapid spread of false approval rumors.
SEC delays have endured, despite these positive sentiments. 21Shares’ XRP ETF application was postponed by the Commission today, resulting in the postponement of another proposal by a minimum of three weeks.
The SEC applied the same procedure to a Dogecoin product from Grayscale in addition to 21Shares’ XRP offering.
The disappointment was further exacerbated by the Commission’s announcement of comparable delays for five distinct Solana ETF applications yesterday. The ETF market is experiencing significant growth, and the SEC is presently under a more pro-crypto leadership.
What is the reason for the lack of approval of any proposals? James Seyffart, a distinguished ETF analyst, addressed these concerns:
“Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days. If we’re gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early Q4,” Seyffart claimed.
He subsequently stated that the Commission typically allocates the maximum time to the comprehensive evaluation of ETF applications. If the SEC is not compelled to decide on an XRP ETF until October, it will take all the time it can get.
The SEC is responsible for other responsibilities besides the bureaucratic minutiae associated with a transformative decision.
The SEC has issued similar delays for two additional altcoin-related products today, following the postponement of the XRP and Dogecoin ETFs. The likelihood of eventual approval remains relatively high, despite these setbacks.
Previously, the majority of analysts emphasized that Litecoin would be the first altcoin ETF to receive approval after Ethereum. This is a result of the asset’s unambiguous classification as a commodity. However, the commission had previously postponed the approval of various Litecoin ETF applications.
In any case, the XRP ETF and all other novel altcoin filings should anticipate a lengthy wait. The Securities and Exchange Commission (“SEC”) is emitting some exceedingly optimistic indicators regarding its regulatory policies regarding crypto exchange-traded funds (“ETFs”).
However, government institutions operate on a time scale different from the rapidly erupting crypto market. Regardless of the market’s performance, the Commission will not act hastily.
