Altcoin ETFs on Hold: SEC Delays Decisions
SEC Postpones Decisions on Dogecoin and Ripple ETF Proposals
In the realm of digital assets, the Securities and Exchange Commission (SEC) has decided to wait till mid-June to make decisions about potentially allowing investors to trade Spot ETFs centered around Dogecoin and XRP. The bitcoin-friendly administration of President Trump has heightened asset managers' hopes for successful altcoin ETFs.
Originally scheduled to announce their decisions this month, other ETF proposals, including Franklin Templeton's Solana ETF and Grayscale's HBAR ETF, along with staking rule changes for Franklin and Fidelity's Ethereum ETFs, have been postponed, as has a decision regarding Invesco Galaxy's Bitcoin and Ethereum ETFs' in-kind creation and redemption mechanisms.
Since the approvals of Bitcoin ETFs last year, asset managers have been throwing their hats in the ring, seeking to list altcoin ETFs based on assets such as Solana, Litecoin, and Cardano.
Cryptos like Dogecoin and XRP, both self-propelled on their respective blockchains, enjoy widespread popularity among traders. DOGE, the eighth-largest cryptocurrency by market cap, and XRP, the fourth-largest, are also among the Top 10 most frequently traded cryptocurrencies over a 24-hour span.
However, it remains to be seen whether altcoin ETFs will live up to their hype, as investment vehicles akin to Ethereum, the second-biggest coin, approved last year have not yet shown the same level of trading activity as their Bitcoin counterparts.
The SEC frequently pushes back when it comes to making decisions on prospective products like ETFs that trade on stock exchanges and provide investors tracking opportunities for particular securities or commodities. Setbacks aside, final decisions on new altcoin ETFs are expected by October 2025.
Digging Deeper:
- The Bitwise Dogecoin ETF and the Franklin XRP Fund have been given new deadlines of June 17, 2025, and June 15, 2025, respectively[1][4][5].
- The surge in filings for altcoin ETFs is a response to the successful launch of Bitcoin and Ethereum ETFs and the regulatory environment under the Trump administration[2].
- These ETFs aim to offer investors diversified cryptocurrency exposure and potentially boost market value[2][3].
Edited by Andrew HaywardEditor's note: This story has been updated to reflect additional ETF delays.
- The Securities and Exchange Commission (SEC) has pushed back their decisions on potentially allowing Dogecoin and XRP Spot ETFs until mid-June.
- The bitcoin-friendly administration of President Trump has increased asset managers' hopes for successful altcoin ETFs, including those based on assets like Solana, Litecoin, and Cardano.
- The SEC has postponed decisions on other ETF proposals, such as Franklin Templeton's Solana ETF, Grayscale's HBAR ETF, and in-kind creation and redemption mechanisms for Invesco Galaxy's Bitcoin and Ethereum ETFs.
- Dogecoin and XRP, both popular cryptocurrencies self-propelled on their respective blockchains, are among the Top 10 most frequently traded cryptocurrencies over a 24-hour period, with DOGE being the eighth-largest cryptocurrency by market cap and XRP the fourth-largest.
- Despite the hype around altcoin ETFs, it remains unclear if they will match the trading activity of their Bitcoin counterparts, like Ethereum ETFs approved last year.
- The SEC often experiences delays when making decisions on prospective products like ETFs that trade on stock exchanges and provide investors tracking opportunities for particular securities or commodities.
- Final decisions on new altcoin ETFs are expected by October 2025, with the Bitwise Dogecoin ETF and the Franklin XRP Fund expected to receive new deadlines on June 17, 2025, and June 15, 2025, respectively.
- The surge in filings for altcoin ETFs is a reaction to the successful launch of Bitcoin and Ethereum ETFs and the favorable regulatory environment under the Trump administration.
- These ETFs aim to provide investors diversified cryptocurrency exposure and potentially boost market value.
