The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on spot ETFs for the 21Shares XRP Trust, Grayscale Dogecoin Trust, and Bitwise’s proposal to add staking to its ETH ETF.
All applications are now under a new deadline, July 2025. However, there is a strong possibility these requests are postponed until October, as the SEC continues to take a cautious approach in evaluating spot ETFs.
Regulatory Delays & Market Impact
The SEC’s latest delay follows a pattern of extended review periods for crypto-related ETFs. The commission cited the need for additional time to assess the proposals and their compliance with investor protection regulations.
While Bitcoin and Ethereum spot ETFs were approved last year, altcoin ETFs remain under vigilant watch, with regulators weighing the risks associated with market manipulation and fraud prevention.
From a speculative standpoint, there is a strong chance that the Commission is “buying time’ until its crypto task force finalizes its assessment of broader digital asset regulation. Given the SEC’s history of extended decision timelines, it’s possible that the agency is delaying ETF approvals to align with future regulatory frameworks or new enforcement strategies.
SEC Accepting Public Comments
According to the SEC’s filing, NYSE Arca, Inc. submitted a proposed rule change on March 20, 2025, seeking approval for staking within the Bitwise Ethereum ETF. Under Section 19(b)(2) of the Securities Exchange Act, the SEC had 45 days to respond, but has now extended the deadline to July 6, 2025.
You can actually help if you wish to see this application move forward more quickly. The Commission is accepting public comments on the matter, of which you can add your contribution right here.
What’s Next?
While the SEC’s delay does not indicate an outright rejection, it does suggest that regulators are taking a cautious approach toward approving altcoin ETFs. Analysts predict that October could be the earliest window for final approvals, depending on how the SEC evaluates market risks and investor protections.
