SEC Delays XRP & LTC ETFs, TRX Fund Makes Progress
- SEC delays XRP and Litecoin ETF decisions beyond May 26.
- TRX staking ETF acknowledged, hinting at possible innovation approval.
- ETF approvals unlikely before Q4, says top market analyst.
The U.S. Securities and Exchange Commission (SEC) has again postponed its decision-making on several major crypto ETF applications, adding further uncertainty to the future of regulated digital asset products. But even in the midst of regulatory freeze, there is one product, a staking ETF tied to TRX (TRON) that is progressing.
This combination of setbacks and limited progress provides a snapshot of the SEC’s conservative but dynamic approach to the crypto ETF space.
XRP, Litecoin ETFs Under Further Scrutiny
In fresh submissions, the SEC prolonged its deadline to approve CoinShares’ XRP and Litecoin ETFs. The XRP fund, intended to track the price of XRP while holding the token and cash, will now undergo deeper regulatory scrutiny. The second review phase will run beyond the May 26 deadline, with no firm conclusion yet in sight.
The proposed Litecoin ETF, also backed by CoinShares, will continue under extended review for its potential listing on the Nasdaq exchange. These decisions follow a pattern of the SEC applying longer timelines to examine the risks and legal compliance of crypto-based financial products.
While these are not rejections, they represent a regulatory bottleneck that continues to slow the launch of spot digital asset ETFs in the U.S.
TRX Staking ETF Gains Formal Recognition
In contrast to the delays, there was a small but notable advancement: the SEC officially acknowledged a staked TRX ETF submitted by Canary Funds. The fund would be the first exchange-traded product offering exposure to TRX with built-in staking features allowing investors to potentially earn yield from TRON’s proof-of-stake mechanism.
Although acknowledgment does not equate to approval, it marks a significant step forward in the SEC’s willingness to review more innovative crypto ETF proposals, including those involving staking a feature many see as key to next-generation crypto investment products.
ETF analyst James Seyffart commented on the mixed developments via X (formerly Twitter):
“Delays include Bitwise & CoinShares XRP ETFs… On the more positive side: SEC acknowledged @CanaryFunds’s staked TRX filing.”
He noted that approvals for such products are unlikely before late June, setting more realistic expectations for the early fourth quarter.
The SEC’s delays extend beyond just XRP and Litecoin. Grayscale’s Dogecoin ETF and five Solana ETF applications are also caught in the extended regulatory web. The Commission also delayed Fidelity’s in-kind Bitcoin ETF filing, signaling its continued hesitancy to approve a broad range of digital asset ETFs in quick succession.
This cautious approach underscores the agency’s continued concern over market manipulation, investor protection, and compliance issues even as investor appetite grows for regulated crypto exposure.
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SEC Delays XRP & LTC ETFs, TRX Fund Makes Progress
- SEC delays XRP and Litecoin ETF decisions beyond May 26.
- TRX staking ETF acknowledged, hinting at possible innovation approval.
- ETF approvals unlikely before Q4, says top market analyst.
The U.S. Securities and Exchange Commission (SEC) has again postponed its decision-making on several major crypto ETF applications, adding further uncertainty to the future of regulated digital asset products. But even in the midst of regulatory freeze, there is one product, a staking ETF tied to TRX (TRON) that is progressing.
This combination of setbacks and limited progress provides a snapshot of the SEC’s conservative but dynamic approach to the crypto ETF space.
XRP, Litecoin ETFs Under Further Scrutiny
In fresh submissions, the SEC prolonged its deadline to approve CoinShares’ XRP and Litecoin ETFs. The XRP fund, intended to track the price of XRP while holding the token and cash, will now undergo deeper regulatory scrutiny. The second review phase will run beyond the May 26 deadline, with no firm conclusion yet in sight.
The proposed Litecoin ETF, also backed by CoinShares, will continue under extended review for its potential listing on the Nasdaq exchange. These decisions follow a pattern of the SEC applying longer timelines to examine the risks and legal compliance of crypto-based financial products.
While these are not rejections, they represent a regulatory bottleneck that continues to slow the launch of spot digital asset ETFs in the U.S.
TRX Staking ETF Gains Formal Recognition
In contrast to the delays, there was a small but notable advancement: the SEC officially acknowledged a staked TRX ETF submitted by Canary Funds. The fund would be the first exchange-traded product offering exposure to TRX with built-in staking features allowing investors to potentially earn yield from TRON’s proof-of-stake mechanism.
Although acknowledgment does not equate to approval, it marks a significant step forward in the SEC’s willingness to review more innovative crypto ETF proposals, including those involving staking a feature many see as key to next-generation crypto investment products.
ETF analyst James Seyffart commented on the mixed developments via X (formerly Twitter):
“Delays include Bitwise & CoinShares XRP ETFs… On the more positive side: SEC acknowledged @CanaryFunds’s staked TRX filing.”
He noted that approvals for such products are unlikely before late June, setting more realistic expectations for the early fourth quarter.
The SEC’s delays extend beyond just XRP and Litecoin. Grayscale’s Dogecoin ETF and five Solana ETF applications are also caught in the extended regulatory web. The Commission also delayed Fidelity’s in-kind Bitcoin ETF filing, signaling its continued hesitancy to approve a broad range of digital asset ETFs in quick succession.
This cautious approach underscores the agency’s continued concern over market manipulation, investor protection, and compliance issues even as investor appetite grows for regulated crypto exposure.
Highlighted Crypto News Today:
Read More