SEC Delays XRP and DOGE ETF Approval: Key Differences from Bitcoin and Ethereum Funds Revealed
Regulatory roadblocks hit meme coins and altcoins as traditional crypto ETFs race ahead.
Why XRP and DOGE ETFs Face Uphill Battle
The SEC's hesitation stems from deeper concerns about market manipulation and liquidity—issues that Bitcoin and Ethereum largely overcame through institutional adoption and mature trading ecosystems. While BTC and ETH funds sailed through with relative ease, regulators keep hitting pause on anything smelling like retail speculation.
Regulatory Arbitrage: Wall Street's Favorite Game
Meanwhile, BlackRock and friends keep collecting management fees on approved crypto products—because nothing beats getting paid while regulators play gatekeeper. The irony? These same institutions once called crypto a scam now profit from its most vanilla offerings.
When Bureaucracy Outpaces Innovation
The delay exposes the fundamental tension between decentralized networks and centralized oversight. By the time the SEC finishes its risk assessment, half these assets might already be obsolete—but hey, due process takes time. Just ask anyone who's ever tried to get a paperwork-approved innovation.
SEC Extends XRP ETF Deadlines as DOGE Fund Faces Short Delay
On September 10, the SEC extended its review of the Franklin XRP ETF, moving the final decision deadline from September 15 to November 14, 2025. The regulator cited the need for more time to evaluate comments and potential risks.
It marks the second extension since the product was first filed in March, leaving 15 XRP ETF applications in limbo. However, even with the delay, bettors on Polymarket have assigned more than a 90% chance of approval by year-end, suggesting that investors are still confident Ripple will secure its own ETF before 2025 is done.
While XRP awaits clarity, attention has shifted to Dogecoin. According to Bloomberg ETF analyst Eric Balchunas, the Rex-Osprey Doge ETF (DOJE), initially meant to hit the market on September 12, is now scheduled to launch mid-next week, likely September 18.
Recent data from Santiment shows whales have been accumulating the OG meme coin in anticipation of the ETF, with holdings by wallets containing between one and ten million DOGE reaching a four-year high.
Different Structures, Different Outcomes
The SEC’s approach highlights a key divide in how crypto ETFs reach the market. For example, spot Bitcoin and Ethereum ETFs are organized as grantor trusts under the Securities Act of 1933. This ‘33 Act framework is now the industry standard for physically backed crypto products, but it involves a lengthy review process that includes a formal comment period.
Meanwhile, according to industry expert James Seyffart, the Dogecoin product is structured under the Investment Company Act of 1940, allowing it to use a unique framework as a Registered Investment Company (RIC), which is different from the standard setup used by the more established crypto ETFs.
Its strategy involves gaining spot market exposure through a Cayman Islands subsidiary, a legal innovation designed to help bypass regulatory constraints. This alternative arrangement can allow for faster time-to-market and different operational mechanics, such as the ability to hold derivatives alongside spot assets.
The regulatory arbitrage explains why a fund for Dogecoin, an asset originally created as a joke, might trade in the U.S. before one for XRP, which has a more developed ecosystem and legal precedent.
