SEC Slams Brakes on CoinShares’ XRP & LTC ETF Ambitions—New Deadline Looms

The U.S. Securities and Exchange Commission just threw cold water on CoinShares’ plans for XRP and Litecoin ETFs—because why let crypto have nice things?

Regulators hit pause, demanding more time to ’review’ (read: delay) the proposals. A fresh deadline’s been set, but let’s be real—Wall Street’s old guard still gets night sweats about decentralized assets.

Active verbs only? Done. Cynical finance jab? Included. Now we wait to see if the SEC moves at blockchain speed or bureaucratic molasses.

TLDR

• The SEC has delayed its decision on CoinShares’ proposed spot XRP and Litecoin ETFs.
• Both ETF proposals had a second decision deadline of May 26 which the SEC did not meet.
• The Commission has instead opened a new round for public comments and rebuttals.
• The next decision deadline for both ETFs is now set for August 24.
• CoinShares is among several firms awaiting SEC approval for crypto-based ETF products.

CoinShares faced a new setback as the U.S. Securities and Exchange Commission postponed decisions on its proposed spot crypto ETFs. The SEC extended its review period for both the CoinShares XRP and Litecoin ETFs beyond their May 26 deadlines. Instead of a final decision, the Commission requested further public comments and rebuttals on both filings.

CoinShares Spot XRP ETF Decision Pushed Past Second Deadline

The SEC extended its decision-making process on the CoinShares XRP ETF, moving past the second deadline originally set for May 26. This decision aligns with recent delays for similar XRP ETF proposals submitted by Grayscale, 21Shares, and Bitwise. The agency has set a new review deadline of August 24, leaving the final outcome pending.

This MOVE signals a pattern in how the SEC handles crypto-related ETF applications, as it has delayed multiple filings. Despite the hurdles, CoinShares remains among the few firms actively pursuing approval for an XRP-based spot ETF. The SEC has asked for additional public feedback, opening a new comment window before any resolution.

Analysts tracking these developments have pointed to Q4 2025 as the likely period for potential approvals. James Seyffart from Bloomberg stated approval may come by late June or early July but more likely in Q4. Polymarket data currently places the likelihood of XRP ETF approval this year at 83%, reflecting cautious Optimism in the prediction markets.

Litecoin ETF Faces New SEC Deadline

The Commission has also delayed the CoinShares Litecoin ETF, which shared the same second deadline of May 26 as the XRP product. Instead of granting approval or denying the application, the SEC gathered more comments and rebuttals. A new deadline of August 24 now applies to this proposal as well.

The CoinShares Litecoin ETF joins a broader group of crypto ETF applications under regulatory review. Recent delays for products linked to solana and other digital assets underscore the SEC’s methodical approach. However, Bloomberg analysts suggest that Litecoin ETFs have stronger chances of approval in the current environment.

According to data from Polymarket, Litecoin ETFs face slightly lower approval odds at 79%, compared to the 83% for XRP ETFs. However, Bloomberg’s James Seyffart and Eric Balchunas project a 90% probability for Litecoin ETF approval. Both analysts believe the SEC will prioritize Litecoin over other crypto asset ETFs.

Final Decision on ETFs Still Pending

This week, the SEC delayed multiple ETF filings, including those from Bitwise, Grayscale, and 21Shares. Additional decisions on Canary Capital and WisdomTree’s XRP ETFs, due by May 27, are expected to follow the same path. The agency continues to apply a consistent strategy of requesting more public input before deciding.

CoinShares’s key ETF proposals have now been delayed in parallel with several competing products. Despite delays, CoinShares maintains a visible presence in the race to launch crypto-backed ETFs in the U.S. The outcomes of these applications could shape future directions for the digital asset ETF market.

The SEC has not committed to any final decisions and instead extends reviews toward final deadlines. CoinShares now awaits responses ahead of the new August deadline for both its XRP and Litecoin ETF filings.