SEC Delays Decisions on XRP and Dogecoin Spot ETFs Proposed by 21Shares and Grayscale

The U.S. Securities and Exchange Commission has put off its rulings on proposals to list exchange-traded funds tracking XRP and Dogecoin, according to filings on Tuesday.

The SEC is now expected to decide on the 21Shares’s XRP fund and Grayscale’s Dogecoin fund by Oct. 25 and Nov. 15, respectively. Previously, both funds were due to be approved or rejected by Aug. 15.

“The Commission is instituting proceedings for further analysis of the matters presented in the application to permit additional time for the processing of the application,” the filings said.

The regulator is considering if the ETFs address securities exchanges rules "designed to prevent fraudulent and manipulative acts and practices' and “to protect investors, members of the public and the interest of the exchange.”

Cboe and NYSE, where the 21Shares and Grayscale funds would be traded, respectively, submitted their requests for rules changes earlier this year. The delays do not foreshadow whether the SEC will approve the funds, the filing noted.

Those delays are the latest for altcoin-based funds that issuers have proposed in recent months. On Monday, the SEC extended its deadlines to decide on proposals from 21Shares, Bitwise, VanEck, and Canary Capital for ETFs tracking the price of Solana.

Those funds are among a slew of altcoin-based offerings that issuers have proposed following the dramatic success of spot Bitcoin ETFs and lesser success of spot Ethereum funds, both of which debuted last year. Both 21Shares and Grayscale issue Bitcoin and Ethereum funds in the U.S. following approvals from the SEC last year.

Top asset managers like Bitwise, Franklin Templeton, and CoinShares have applied for new crypto ETFs that would give investors exposure Litecoin, Cardano, SUI and Pengu, among other digital assets.

Swiss firm 21Shares last year filed an S-1 form with the U.S. SEC to launch an XRP ETF. XRP is the fourth biggest cryptocurrency by market cap. It was created by the founders of fintech Ripple, a company that aims to speed up cross-border transactions.

Stamford, Connecticut-based, crypto-based asset manager Grayscale in January filed plans to convert its Dogecoin Trust into an ETF. The popular meme coin, is eighth biggest cryptocurrency by market cap.

Spot Bitcoin funds have been the most successful in ETFs' 32-year history and currently have over $126 billion in assets under management, according to CoinGlass data.