US Crypto ETF Market Faces New Delays as the SEC Extends Reviews for Major Digital Asset Funds

In a recent SEC filing, the Commission announced it would postpone its decision on CoinShares' proposed XRP ETF, pushing the review ahead of its second deadline on May 26.

The US crypto exchange-traded fund (ETF) market is still facing significant delays as the Securities and Exchange Commission (SEC) continues its measured approach to regulating the burgeoning digital asset industry.

Despite the setbacks, there is also incremental progress, with the SEC’s official acknowledgment of a new TRX staking ETF signaling cautious optimism for industry stakeholders.

SEC Delays on Major Crypto ETFs

In a recent filing, the Commission announced it would be postponing its decision on CoinShares’ proposed XRP ETF, pushing the review ahead of its second deadline on May 26.

Likewise, the agency has also delayed its ruling on CoinShares’ application to list and trade shares of its Litecoin ETF on the Nasdaq Stock Market.

However, the agency officially recognized an offering from Canary Capital as having exposure to staked TRX, signaling slight progress in the regulatory pipeline. This would be the first exchange-traded fund offering exposure to TRX with staking features.

This formal recognition is not an immediate approval. But it is still significant because it signals that the SEC is willing to assess new types of digital asset ETFs, including those that incorporate staking for yield.

The CoinShares XRP ETF will hold units of XRP and cash, tracking the value of the token. It is currently being reviewed to determine compliance with the Securities Exchange Act of 1934.

During this review, the SEC is inviting public comments and will decide whether to approve or disapprove the registration.

“As expected, more delays on crypto ETFs dropped today. Delays include BitwiseInvest & CoinSharesCo XRP ETFs. Delay on Litecoin ETF Filing. Delay on Fidelity’s In-kind Bitcoin filing. On the more positive side: SEC acknowledged @CanaryFunds’s staked TRX filing,” ETF analyst at noted on X.

The analyst previously noted that delays on spot crypto ETFs were expected. According to Seyffart, any potential early approvals from the SEC are unlikely to materialize before late June or early July. He even set a more realistic timeline for approvals, pointing to early in the fourth quarter.

The latest developments come as the 21Shares XRP ETF and Grayscale Dogecoin ETF are facing extended timelines. The Commission also announced similar delays for five different Solana ETF applications recently, adding to the disappointment.