SEC Kicks the Can on 21Shares’ XRP ETF—Again
Another day, another delay. The SEC has punted its decision on 21Shares’ spot XRP ETF application—because why approve innovation when you can drown it in paperwork?
Regulators move at the speed of dial-up while crypto markets operate in 5G. The ’protect investors’ mantra rings hollow when the real protection seems to be shielding legacy finance from competition.
XRP holders left grinding their teeth as the SEC plays its favorite game: regulatory limbo. Meanwhile, Wall Street gets rubber-stamped Bitcoin ETFs faster than you can say ’hypocrisy.’
XRP ETF Gets Delayed Again
The XRP ETF is currently the subject of significant community hype, since the world’s first such product began trading in Brazil last month.
XRP Futures trading also went live on the CME yesterday, further building enthusiasm. However, this anticipation can also create community impatience, as evidenced by fake approval rumors taking off like wildfire.
Despite these good feelings, SEC delays have persisted. Today, the Commission postponed 21Shares’ XRP ETF application, pushing another proposal back by at least three weeks.
In addition to 21Shares’ XRP offering, the SEC gave the same treatment to a Dogecoin product from Grayscale.
Yesterday, the Commission announced similar delays for five different solana ETF applications, adding to the disappointment. The ETF market is booming, and the SEC is currently under more pro-crypto leadership.
Why isn’t it approving any proposals? James Seyffart, a prominent ETF analyst, addressed these concerns:
“Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days. If we’re gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early Q4,” Seyffart claimed.
He went on to state that the Commission usually takes as much time as possible to thoroughly consider ETF applications. If the SEC isn’t forced to decide on an XRP ETF until October, it’ll take all the time it can get.
In addition to the bureaucratic minutiae of a transformative decision like this, the SEC also has to handle a wide range of other duties.
After postponing the XRP and dogecoin ETFs, the SEC issued similar delays for two more altcoin-related products today. Despite these setbacks, the odds of eventual approval are still pretty high.
Previously, most analysts emphasized that Litecoin would be the first altcoin ETF to get approval after Ethereum. This is due to the asset’s clear status as a commodity. Yet, the commission also postponed different Litecoin ETF applications earlier.
In any event, it looks like the XRP ETF and all other novel altcoin filings should prepare for a long wait. The SEC is giving some incredibly bullish signals about its views on crypto ETF regulation.
Nonetheless, government institutions operate on a different time scale from the rapid-firing crypto market. The Commission won’t rush, no matter how good the market is.
