SEC Pushes Back Decisions on Truth Social, Solana, and XRP Crypto ETFs to October
The U.S. Securities and Exchange Commission (SEC) has once again delayed its rulings on several high-profile cryptocurrency exchange-traded funds (ETFs), extending review deadlines into October. The agency announced new decision dates in notices filed on August 18, signaling a continued cautious approach toward approving various crypto investment products.
New Deadlines for Key Crypto ETFs
The SEC’s updated timetable sets October 8 as the deadline for NYSE Arca’s Truth Social Bitcoin and Ethereum ETF. Reviews for Solana-related offerings from 21Shares and Bitwise have been pushed to October 16, while the 21Shares Core XRP Trust’s decision is now due by October 19. —
Details on the ETFs Under Review
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Truth Social Bitcoin and Ethereum ETF: Submitted on June 24, this commodity-based trust would directly hold Bitcoin (BTC) and Ether (ETH), issuing shares backed by those assets. Although branded under former U.S. President Donald Trump’s Truth Social platform, the fund is structured similarly to other spot Bitcoin and Ether ETFs currently available.
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Solana ETFs by 21Shares and Bitwise: These products seek to provide investors exposure to Solana’s native token (SOL). Filed through the Cboe BZX exchange, these would be the first U.S. spot Solana ETFs, offering a secure way to gain price exposure in this rapidly growing blockchain ecosystem.
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21Shares Core XRP Trust: Designed to hold XRP and track its market value, this trust was first filed in February and later amended. Facing an imminent 180-day review deadline, the SEC granted itself an additional 60 days for further evaluation.
Broader Context: ETF Delays and Industry Developments
The SEC’s extensions are consistent with its broader pattern throughout the summer, where many altcoin ETF proposals have seen their decision timelines moved into the fall. Cointelegraph reported in March that the SEC delayed rulings on various altcoin ETFs, including products linked to Litecoin (LTC) and Dogecoin (DOGE), along with XRP.
Among those delayed was CoinShares’ spot Litecoin ETF application, which—like the others—would hold LTC directly and issue shares based on the token’s value.
Separately, the SEC has postponed decisions on Bitwise’s application to permit in-kind creation and redemption mechanisms for its spot Bitcoin and Ethereum ETFs. This decision, now anticipated in September, could shape whether investors might exchange ETF shares directly for the underlying cryptocurrencies instead of cash settlements.
Why Does the SEC Delay Decisions?
The SEC often utilizes its full statutory extension periods to thoroughly assess new types of financial products while gathering public commentary and weighing regulatory implications. Bloomberg ETF analyst James Seyffart noted in May that such reviews “typically take the full time” allotted under regulatory procedures, with most ETF final decisions historically clustering around October.
Current Market Landscape
The U.S. market now features a dozen spot Bitcoin ETFs, multiple Ether-based products, and a growing pipeline of applications for tokens like Solana, XRP, and others. Globally, over one hundred crypto-related ETFs have been listed, indicating the increasing institutional adoption and investor demand for cryptocurrency exposure through traditional investment vehicles.
At the forefront is BlackRock’s iShares Bitcoin Trust, which commands leadership with assets under management exceeding $87 billion. Its dominant market presence is characterized by strong liquidity and brand recognition, attracting the majority of inflows, while competing funds remain much smaller by comparison.
Looking Ahead
October is shaping up to be a critical month for ETF rulings, with numerous high-profile crypto filings slated for potential approval or further delay. Investors, regulators, and industry watchers alike will be closely monitoring these decisions, which could have significant implications for the mainstream adoption and regulatory framework surrounding digital assets.
For ongoing updates on the ETF application process and other crypto regulatory news, stay tuned to Cointelegraph.
Tags: SEC, CBOE, Regulation, Ethereum ETF, Bitcoin ETF, Solana, XRP, Cryptocurrency, Exchange-Traded Funds