The U.S. Securities and Exchange Commission (SEC) has postponed its decision on proposed exchange-traded funds (ETFs) tied to XRP and Dogecoin, extending its cautious approach toward altcoin-based investment products.
According to filings released Tuesday, the Commission has opened formal proceedings to determine whether the applications—submitted by 21Shares and Grayscale—meet regulatory standards. The SEC will evaluate whether the proposed ETFs comply with anti-fraud, anti-manipulation, and investor protection rules.
The proposed ETFs would be listed on Cboe and the New York Stock Exchange (NYSE), respectively. While the SEC has not signaled approval or rejection, the delay allows for public comment and deeper market analysis.
This move is part of a broader uptick in altcoin ETF proposals following the success of Bitcoin and Ethereum spot ETFs in 2024. However, altcoin products continue to face heightened regulatory scrutiny due to concerns about market maturity and volatility.
SEC Extends Review of Solana and Altcoin ETFs
The SEC also announced delays for multiple altcoin ETF applications, including proposals tied to Solana, reflecting growing regulatory caution toward digital assets beyond Bitcoin and Ethereum.
Filings released Monday show that ETF applications from 21Shares, Bitwise, VanEck, and Canary Capital have been put on hold. These delays came just one day before the SEC paused decisions on XRP and Dogecoin ETFs—suggesting a broader hesitation around altcoin-based products.
This approach contrasts with the rapid market embrace of spot Bitcoin ETFs, which saw record inflows after their 2024 approval. Ethereum ETFs have enjoyed moderate success, but newer altcoin proposals face tougher questions regarding liquidity, price integrity, and investor safety.
Despite regulatory headwinds, fund managers continue to expand their ETF ambitions. Recent filings include proposals linked to Litecoin, Cardano, SUI, and meme coin Pengu, reflecting rising interest in crypto diversification among retail and institutional investors.
Grayscale and 21Shares Push for Altcoin Access
Grayscale and 21Shares are leading the charge to bring XRP and Dogecoin ETFs to U.S. markets despite ongoing regulatory delays.
21Shares submitted an S-1 filing last year to launch a spot ETF based on XRP—the fourth-largest crypto by market capitalization. Created by Ripple Labs, XRP is designed for cross-border payments and has gained adoption among financial institutions.
Meanwhile, Grayscale is seeking to convert its existing Dogecoin Trust into an ETF. The company filed its application in January to capitalize on Dogecoin’s enduring popularity. Once dismissed as a meme, Dogecoin is now the eighth-largest digital asset by market value.
These efforts come as Bitcoin ETFs—approved in 2024—continue to thrive. According to CoinGlass, Bitcoin funds now manage more than $126 billion in assets, making them the most successful ETF category in U.S. market history.
Quick Facts
- The SEC has delayed its decisions on proposed XRP and Dogecoin ETFs from 21Shares and Grayscale.
- Separate delays were also issued for Solana-linked ETFs from Bitwise, VanEck, and others.
- Altcoin ETFs face stricter scrutiny compared to Bitcoin and Ethereum funds due to liquidity and fraud concerns.
- Bitcoin ETFs now hold over $126 billion, the most successful ETF launch category to date.
