The U.S. Securities and Exchange Commission (SEC) has once again postponed its decisions on several cryptocurrency-related fund proposals, including the much-anticipated addition of staking to BlackRock’s iShares Ethereum ETF, as well as Franklin Templeton projects for Solana and XRP funds. Industry experts believe these delays are part of a broader strategy to assess the regulatory landscape.
SEC Decision Postponements: What You Should Know
According to filings submitted by the SEC on Wednesday, the regulatory body extended the deadline for Nasdaq’s proposed rule change regarding staking in the BlackRock iShares Ethereum Trust (ETHA) until October 30—marking a 45-day delay. Similarly, Franklin Templeton’s Solana and XRP ETFs have been postponed by 60 days, with the new review date set for November 14. The SEC has been consistent in delaying such decisions, maintaining a cautious and calculated approach toward approving new cryptocurrency-based financial products.
Ongoing Delays for Crypto ETFs
The SEC’s latest filings follow a series of similar delays. Just days ago, the regulatory body shifted its ruling on Nasdaq’s bid to list the Grayscale Hedera Trust to November 12. Last month, decisions on several other cryptocurrencies, including Dogecoin and Litecoin ETFs, were deferred. As of now, the SEC is juggling decisions on over 90 cryptocurrency ETF applications.
Analysts, such as Bloomberg’s Eric Balchunas, suggest that the regulatory body is likely waiting for broader procedural amendments to simplify approvals in the coming months. Once new listing standards are finalized, experts anticipate rapid growth in the crypto ETF market, particularly for altcoin-based funds and Ethereum staking products.
What to Expect Next
Financial analysts predict high chances of approval for Solana and XRP ETFs, with Bloomberg forecasting a 95% probability of these funds gaining the green light in 2023. Ethereum staking is also expected to be part of this wave of approvals, given the sustained interest from financial institutions and the SEC’s apparent willingness to collaborate with issuers.
If the SEC finalizes generic listing standards by early October, we could witness a surge of cryptocurrency ETFs hitting the market. This would not only pave the way for simplified reviews but also foster broader adoption of blockchain-based financial products.
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