The Securities and Exchange Commission (SEC) recently announced the delay of decisions on three crypto exchange-traded funds (ETFs) on September 10. These decisions affected BlackRock’s Ethereum staking proposal, as well as Franklin Templeton’s spot XRP and Solana ETF applications. The delays were made in light of the SEC’s ongoing development of a generic listing framework that aims to streamline the approval process for future crypto ETFs.
The postponements of these applications have positioned them for potential approval during an expected October batch decision window, which aligns with previous predictions made by Bloomberg ETF analyst James Seyffart. Seyffart had previously suggested that October would see a wave of approvals for crypto ETFs as over 90 filings reach their final deadlines.
The SEC has been collaborating with US exchanges to establish a standardized listing framework for token-based ETFs. This framework would eliminate the need for individual rule-change requests for qualifying assets, allowing ETF sponsors to bypass the usual Form 19b-4 process when certain criteria are met. Key metrics under discussion for qualification thresholds include market capitalization, on-exchange trading volume, and daily liquidity.
The proposed framework would require sponsors to submit registration statements on Form S-1, adhere to standard 75-day review periods, and list products once waiting periods have concluded. This move towards standing rules for qualifying assets aims to shorten timelines and reduce iterative comment cycles between the SEC and applicants, ultimately streamlining the approval process.
In a separate development, ETF expert Eric Balchunas hinted at the potential launch of a Dogecoin ETF under the 40 Act structure on September 11. This could mark the first-ever US ETF to hold an asset with no inherent utility, as Dogecoin was originally created as a meme-inspired cryptocurrency. A successful launch of the Dogecoin ETF could potentially kickstart broader approval momentum for pending applications, including those for assets like Solana, XRP, Litecoin, and staking versions of existing products.
Overall, the crypto ETF landscape is rapidly evolving, with 92 applications pending SEC decisions from major issuers such as VanEck, Grayscale, Canary, Bitwise, and Franklin Templeton. These applications cover a wide range of assets, from established cryptocurrencies to emerging tokens, signaling a growing interest in crypto ETFs within the investment community. The upcoming months are likely to see significant developments in the regulatory approval of these innovative financial products.