The U.S. Securities and Exchange Commission (SEC) Announced a Delay in Reviewing CoinShares' Proposed XRP ETF and Litecoin ETF

The U.S. Securities and Exchange Commission (SEC) has decided to delay its review of bothCoinShares’s proposed XRP ETF and Litecoin ETF, just days before the May 26 deadline.

The regulator is extending its assessment of the XRP ETF proposal, which aims to list a fund that tracks the token’s market price and holds XRP and cash.

The SEC also seeks public feedback on whether the proposed rule change complies with the Exchange Act and other relevant rules and regulations.

The Commission plans to factor in these comments when making its final decision.

CoinShares’ Application to List Litecoin ETF on Nasdaq Awaits SEC Decision

Moreover, the SEC is postponing its decision on whether to approve or reject CoinShares’s application to list the Litecoin ETF on the Nasdaq exchange.

This fund is designed to track the price of Litecoin.

These delays follow previous actions taken by the SEC, which has also postponed decisions on multiple other cryptocurrency ETFs.

This includes ETFs tied to Solana and Dogecoin.

The SEC Acknowledges TRX Staking ETF Filing

While applications for an XRP ETF and Litecoin ETF face delays, the SEC has acknowledged a new filing for a TRX staking ETF by Canary Capital.

This proposal would be the first to offer exposure to staked TRX in an ETF format.

The SEC’s Division of Investment Management has now granted 45 days for comments on the new TRX installment.

The agency’s action begins a formal review but does not mean approval. This step allows the proposal to enter the regulatory process and signals the SEC’s willingness to consider staking-based ETFs.

TRX staking ETF would include TRON tokens used for staking, a process where tokens help secure the network and generate rewards.

This marks a new development in crypto ETF proposals, expanding beyond basic token tracking.

Canary Capital’s filing introduces a staking component not previously seen in other ETF applications under review. This formal step moves the fund into the same regulatory process as more conventional ETF proposals.

The SEC’s actions come as the cryptocurrency industry eagerly anticipates the approval of spot Bitcoin ETFs, an area where the regulator has yet to make significant progress.

The agency's activity in reviewing and providing feedback on the TRX staking ETF signals an openness to considering new types of cryptocurrency investment products.

The SEC’s actions will continue to be monitored closely by market participants.

ETF Analyst Comments on SEC Delay Pattern

ETF analyst James Seyffart shared a post on X confirming the updates.

"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."

The SEC has not yet issued approvals or rejections for these filings.

Seyffart further noted the pattern of delays across multiple applications.

These include Bitwise’s second attempt at an XRP ETF, CoinShares’s application for an XRP ETF, and a third attempt by Fidelity to directly list a bitcoin futures ETF.

Additionally, the SEC is delaying its decision on an in-kind bitcoin ETF filing from Fidelity.

The regulator's actions come as no surprise, considering its previous postponements of five Solana ETF proposals.

The SEC's activity suggests continued scrutiny of all crypto ETF applications.

The TRX staking ETF is now open for public comments, which will be part of the SEC's consideration in making its final decision on the new offering.