SEC Punts on XRP, Dogecoin ETF Decisions

6 hours ago 10

In brief

The SEC has delayed its decision on separate proposed ETFs tracking, respectively XRP and Dogecoin.
A number of top asset managers are trying to launch altcoin ETFs following the success of Bitcoin funds last year.
The SEC on Monday delayed its decision on multiple Solana-tracking funds.

The U.S. Securities and Exchange Commission has delayed its decisions on rules changes that would allow exchange-traded funds proposed by 21Shares tracking XRP and Grayscale based on the price of Dogecoin to begin trading according to filings on Tuesday.

"The Commission is instituting proceedings to allow for additional analysis" that will help determine if the ETFs address securities exchanges rules "designed to prevent fraudulent and manipulative acts and practices' and “to protect investors,'" the filings said.

Cboe and NYSE, where the 21Shares and Grayscale funds would be traded, respectively, submitted their requests for rules changes earlier this year. The delays do not foreshadow whether the SEC will approve the funds, the filing noted.

The delays are the latest for altcoin-based funds that issuers have proposed in recent months. On Monday, the SEC extended its deadlines to decide on proposals from 21Shares, Bitwise, VanEck, and Canary Capital for ETFs tracking the price of Solana, according to separate regulatory filings on Monday.

Those funds are among a slew of altcoin-based offerings that issuers have proposed following the dramatic embrace of spot Bitcoin ETFs and lesser success of spot Ethereum funds, both of which debuted last year. Both 21Shares and Grayscale issue Bitcoin and Ethereum funds in the U.S. following approvals from the SEC last year.

Top asset managers like Bitwise, Franklin Templeton, and CoinShares have applied for new crypto ETFs that would give investors exposure Litecoin, Cardano, SUI and Pengu, among other digital assets.

Swiss firm 21Shares last year filed an S-1 form with the U.S. SEC to launch an XRP ETF. XRP is the fourth biggest cryptocurrency by market cap. It was created by the founders of fintech Ripple, a company that aims to speed up cross-border transactions.

Stamford, Connecticut-based, crypto-based asset manager Grayscale in January filed plans to convert its Dogecoin Trust into an ETF. The popular meme coin, is eighth biggest cryptocurrency by market cap.

Spot Bitcoin funds have been the most successful in ETFs' 32-year history and currently have over $126 billion in assets under management, according to CoinGlass data.

Edited by James Rubin