CoinShares Spot XRP and Litecoin ETF Decisions Pushed to New Deadlines

CoinShares faced a new setback as the U.S. Securities and Exchange Commission postponed decisions on its proposed spot crypto ETFs.

CoinShares faced a setback as the U.S. Securities and Exchange Commission (SEC) postponed decisions on its proposed spot crypto ETFs. Both the CoinShares XRP ETF and Litecoin ETF had the second deadline of May 26 for a final decision. However, the Commission extended the review period and requested further public comments and rebuttals on both filings.

CoinShares Spot XRP ETF Decision Pushed Past Second Deadline

The SEC has extended the decision-making process on the CoinShares XRP ETF. This decision comes as no surprise, considering the recent delays for similar XRP ETF proposals from Grayscale, 21Shares, and Bitwise.

The agency had set May 26 for the second deadline to grant or deny the CoinShares application. Still, the Commission will now continue examining the filing and has announced a new review deadline of August 24.

This move showcases the SEC's measured approach to crypto-related ETF applications in 2023. The agency has systematically postponed several filings, and this factor contributes to the broader narrative around the difficulties faced by firms seeking to launch crypto ETFs in the U.S.

Despite the hurdles faced by CoinShares and other firms, they are actively pursuing the approval of new crypto-linked ETFs.

Those who have been tracking these developments believe that the fourth quarter of 2025 is more likely for potential approvals.

James Seyffart from Bloomberg expressed that approval could come as early as late June or early July, but a more realistic timeframe is the fourth quarter.

Polymarket currently places the likelihood of XRP ETF approval this year at 83%, showcasing a cautious optimism in the prediction markets.

Litecoin ETF Faces New SEC Deadline

The Commission has also delayed the CoinShares Litecoin ETF, which shares the same second deadline of May 26 with the XRP product. Instead of granting approval or announcing the denial of the application, the SEC will be gathering more comments and rebuttals.

A new deadline of August 24 now applies to this proposal. The CoinShares Litecoin ETF joins a broader group of crypto ETF applications undergoing regulatory scrutiny.

Recent reports highlight the deferral of products linked to Solana and other digital assets, as the SEC applies a methodical approach to these filings.

However, Bloomberg analysts suggest that Litecoin ETFs have a stronger chance of approval in the present environment.

According to data from Polymarket, Litecoin ETFs face slightly lower approval odds at 79%, compared to the 83% for XRP ETFs. However, Bloomberg’s James Seyffart and Eric Balchunas project a 90% probability for Litecoin ETF approval. Both analysts believe the SEC will prioritize Litecoin over other crypto asset ETFs.

Final Decision on ETFs Still Pending

This week, the SEC delayed multiple ETF filings, including those from Bitwise, Grayscale, and 21Shares.

The agency is also expected to make decisions on Canary Capital and WisdomTree’s XRP ETFs, which were due on May 27. These will likely follow a similar pattern of postponement with a request for more public feedback.

CoinShares’s key ETF proposals are now being delayed in parallel with several competing products. Despite the delays, CoinShares remains one of the few firms visibly pursuing the launch of crypto-backed ETFs in the U.S. The outcomes of these applications could shape the future directions of the digital asset ETF market.

The SEC has yet to commit to any final decisions on these ETFs. As the institutions involved in these applications, including Bitwise, Grayscale, and 21Shares, await responses ahead of the new August deadline.