SEC Kicks the Can: XRP and DOGE ETF Hopes Deferred as 21Shares & Grayscale Left in Regulatory Limbo

Another day, another delay—Wall Street’s favorite pastime meets crypto’s relentless optimism.

The SEC has punted yet again on deciding the fate of spot ETFs for XRP and Dogecoin, leaving applications from 21Shares and Grayscale in bureaucratic purgatory. No surprises here—just regulators doing what they do best: buying time while the market moves without them.

Meanwhile, traders shrug and stack memecoins, because why wait for permission when volatility pays better than a government bond?

TLDR:

• The SEC has extended review periods for 21Shares XRP ETF and Grayscale Dogecoin ETF applications
• Public comments are being solicited as part of the formal review process
• Bloomberg analyst James Seyffart expects no approvals before Q3 at the earliest
• The delays follow similar extensions for Solana-tracking ETF proposals
• These altcoin ETFs follow the success of Bitcoin ETFs which now manage over $126 billion

SEC Continues to Scrutinize Altcoin ETF Applications as Crypto Market Watches

The U.S. Securities and Exchange Commission (SEC) has delayed its decisions on multiple cryptocurrency exchange-traded fund (ETF) applications, including those for XRP from 21Shares and Dogecoin from Grayscale.

The agency announced the extensions in regulatory filings on Tuesday, pushing back the original May 21-22 decision deadlines to allow for further examination.

The SEC has opened formal proceedings to evaluate whether these proposals comply with Exchange Act Section 6(b)(5) requirements, which focus on preventing fraud and protecting investors. These delays represent standard procedure in the ETF approval process rather than an indication of the SEC’s final position.

The 21Shares Core XRP Trust aims to track the CME CF XRP-Dollar Reference Rate and would use Coinbase Custody for storage of the digital assets. Grayscale’s proposal includes both a Dogecoin Trust following CoinDesk’s Dogecoin price Index and an XRP Trust tracking CoinDesk’s XRP Price Index.

All three proposed ETFs WOULD issue shares in 10,000-share blocks and hold only their respective digital assets.

Growing Interest in Altcoin ETFs

The delays come amid increasing interest from asset managers in launching altcoin-based investment products. Following the success of spot Bitcoin ETFs and the launch of ethereum funds last year, many firms are now looking to expand their crypto ETF offerings.

Bloomberg ETF analyst James Seyffart commented on the XRP ETF delay, noting that such extensions are routine.

“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,” he wrote.

The SEC is seeking public comments within 21 days of Federal Register publication, with rebuttal submissions due within 35 days. This public feedback will FORM part of the agency’s evaluation process.

These latest delays follow similar extensions for Solana-tracking ETF proposals from 21Shares, Bitwise, VanEck, and Canary Capital, which the SEC announced on Monday.

Both 21Shares and Grayscale already issue Bitcoin and Ethereum funds in the U.S. after receiving SEC approval last year. The Swiss firm 21Shares filed an S-1 form with the SEC last year for an XRP ETF.

XRP currently ranks as the fourth largest cryptocurrency by market capitalization and was created by the founders of Ripple, a fintech company focused on enhancing cross-border transactions.

Grayscale, based in Stamford, Connecticut, filed plans in January to convert its existing Dogecoin Trust into an ETF. Dogecoin is the eighth largest cryptocurrency by market cap and has gained popularity as a meme coin.

The trend of altcoin ETF applications continues to grow with top asset managers including Bitwise, Franklin Templeton, and CoinShares applying for new crypto ETFs that would give investors exposure to various digital assets such as Litecoin, Cardano, SUI, and Pengu.

The SEC’s cautious approach to these new crypto investment vehicles comes in contrast to the fast adoption of Bitcoin ETFs, which have become the most successful launch in the 32-year history of ETFs. According to CoinGlass data, spot Bitcoin funds currently manage over $126 billion in assets.

The regulatory agency emphasized that the extended review proceedings do not indicate its final position on the applications. The crypto industry and investors will now wait for the SEC’s decisions, which could potentially open new regulated investment pathways into the altcoin market.