SEC Delays Decisions on Crypto ETFs: Truth Social, SOL, XRP
SEC Pushes Back ETF Rulings on Truth Social, Solana, and XRP
The U.S. Securities and Exchange Commission (SEC) has deferred its verdicts on three prominent crypto exchange-traded funds (ETFs), pushing the decision deadlines into October. This impacts potential investment vehicles tied to diverse digital assets.
According to filings made on August 18, the SEC has set new decision dates:
- October 8: NYSE Arca's Truth Social Bitcoin and Ethereum ETF
- October 16: 21Shares' and Bitwise's Solana ETFs
- October 19: 21Shares Core XRP Trust
Details on Delayed ETF Proposals
The Truth Social Bitcoin and Ethereum ETF, initially filed on June 24, is structured as a commodity-based trust. It aims to hold Bitcoin (BTC) and Ether (ETH) directly, issuing shares backed by these assets. Despite its branding, it functions similarly to existing spot Bitcoin and Ether ETFs.
Cboe BZX is also seeking approval for the first U.S. spot Solana ETFs through applications from 21Shares and Bitwise. These ETFs would hold Solana (SOL) tokens, providing investors with a regulated avenue to gain exposure to Solana's price movements. With blockchain security solutions from Codeum, investors can better understand the risks involved.
The 21Shares Core XRP Trust seeks to hold XRP and track its market value. The application, initially submitted in February and subsequently amended, was nearing its initial 180-day review deadline before the SEC extended the review period by an additional 60 days.
October: A Decisive Month for Crypto ETFs
These extensions align with a broader trend of the SEC delaying decisions on ETF proposals throughout the summer, with many final deadlines now concentrated in the fall.
In March, reports indicated the SEC postponed decisions on several altcoin ETF proposals, including those linked to XRP, Litecoin (LTC), and Dogecoin (DOGE).
Bitwise’s request to allow in-kind creations and redemptions for its spot Bitcoin and Ethereum ETFs is also under review, with a decision now expected in September. This would allow investors to exchange ETF shares directly for the underlying crypto, rather than cash.
Bloomberg ETF analyst James Seyffart noted on X that the SEC “typically takes the full time to respond to a 19b‑4 filing,” adding that most filings have final due dates in October.
ETF Popularity and Market Dominance
The U.S. market now includes a dozen spot Bitcoin ETFs, various Ether products, and increasing applications for SOL, XRP, and other tokens. Globally, over a hundred crypto-related ETFs are listed.
BlackRock’s iShares Bitcoin Trust leads the market, with over $87 billion in assets under management (AUM). Its size, liquidity, and brand recognition have helped it capture a significant share of the market, dwarfing its competitors.