The U.S. Securities and Exchange Commission (SEC) has again delayed decisions on several cryptocurrency exchange-traded fund (ETF) applications, including those from financial giants BlackRock and Franklin Templeton. These delays, announced this week, impact Franklin Templeton's proposed spot XRP and Solana ETFs, as well as BlackRock's request to add staking capabilities to its iShares Ethereum Trust.
Franklin Templeton's amended Ethereum staking proposal has been pushed to November 13, while decisions on its Solana and XRP ETF applications are now expected by November 14. BlackRock's request to incorporate staking into its iShares Ethereum Trust will be reviewed by October 30.
The SEC's postponements reflect its cautious approach to crypto-based investment products, citing concerns about market manipulation, investor protection, and custody arrangements. The regulator has historically expressed these concerns, requiring more time to evaluate the filings and associated risks.
Franklin Templeton, managing over $1.5 trillion in assets, initially filed its XRP ETF application in early March, aiming to broaden investor access to a major digital asset beyond Bitcoin and Ethereum. Similarly, the firm's Solana ETF proposal, also filed in March, seeks to list shares of the Franklin Solana Trust. BlackRock, the world's largest asset manager with approximately $10 trillion in assets, aims to offer comprehensive Ethereum exposure through a regulated investment vehicle by including staking functionality in its Ethereum ETF. Staking would allow the fund to earn additional returns by participating in Ethereum's proof-of-stake validation process.
Under Section 19(b) of the Securities Exchange Act, the SEC has up to 45 days to act on a proposed rule change, with possible extensions up to 180 days or more. This provision allows regulators to defer decisions, leading to repeated holdups for crypto ETFs. Bloomberg Intelligence analyst James Seyffart reports that the SEC is currently reviewing at least 92 crypto-linked ETFs. Recent months have seen postponements for proposals from 21Shares, VanEck, and WisdomTree. The SEC also delayed its decision on Bitwise's Dogecoin ETF.
Despite the delays, the anticipation of potential altcoin ETF approvals has increased, with Polymarket data indicating a greater than 90% chance of an XRP ETF being approved by the end of 2025. Bloomberg analysts previously suggested that spot altcoin ETF approvals could come as early as October.
