The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to approve exchange-traded funds (ETFs) that would offer investors exposure to popular altcoins Dogecoin and XRP. The regulator announced on Tuesday that it will delay its decision until June on two significant proposals: Bitwise’s Dogecoin ETF and Franklin Templeton’s XRP Fund.
This delay comes as asset managers have ramped up efforts to launch altcoin-based ETFs, following the success of Bitcoin ETFs approved last year. With cryptocurrency trading gaining more mainstream attention, these firms are eager to expand into other digital assets like Dogecoin, XRP, Solana, and Cardano.
Alongside the Dogecoin and XRP delays, the SEC also put off decisions on other proposed crypto ETFs, including Franklin Templeton’s Solana ETF and Grayscale’s HBAR ETF. Additionally, changes to staking rules for Ethereum ETFs from Franklin and Fidelity, as well as the creation and redemption mechanisms for Bitcoin and Ethereum ETFs from Invesco Galaxy, were also delayed.
Firms like Bitwise, Franklin Templeton, Grayscale, and CoinShares are among those pushing to bring altcoin ETFs to market, hoping to replicate the success of Bitcoin-related ETFs. These new products would provide investors with a chance to trade shares linked to specific cryptocurrencies, offering a more accessible way to invest in digital assets without directly owning them.
Both Dogecoin and XRP have built strong followings and remain among the most actively traded cryptocurrencies. Dogecoin, known for its meme origins, ranks as the eighth-largest cryptocurrency by market cap, while XRP holds the fourth spot. Despite their popularity, the SEC’s hesitation reflects uncertainty around the success of altcoin ETFs. Ethereum-based ETFs, despite being approved last year, have not generated the same trading volumes as Bitcoin’s ETFs, raising questions about the demand for altcoin-based products.
As the SEC takes its time with these decisions, many in the crypto industry are watching closely, hoping that regulatory clarity will help foster more investment in digital assets.