The Securities and Exchange Commission (SEC) delayed decisions on three crypto exchange-traded funds (ETFs) on Sept. 10.
The decisions postponed BlackRock’s Ethereum staking proposal alongside Franklin Templeton’s spot XRP and Solana ETF applications. The delays come as the SEC develops a generic listing framework that could streamline future crypto ETF approvals.
The postponements position these applications for potential approval during an anticipated October batch decision window, aligning with previous predictions.
Bloomberg ETF analyst James Seyffart noted in April that crypto ETFs would likely get a batch of approvals in October, when some of the over 90 filings reach their final deadlines.
Generic framework
The SEC has been working with US exchanges on a standardized listing framework for token-based ETFs that would eliminate individual rule-change requests for qualifying assets.
The initiative would allow ETF sponsors to bypass the customary Form 19b-4 process when underlying tokens meet predetermined criteria.
Under the proposed framework, sponsors would submit registration statements on Form S-1, observe standard 75-day review periods, and list products once the waiting periods have ended.
Market capitalization, on-exchange trading volume, and daily liquidity represent key metrics under discussion for qualification thresholds. The current rule-change pathway requires each spot crypto ETF to secure a Commission order before listing, a process designed for novel or complex products.
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Moving to standing rules for qualifying assets would shorten timelines and reduce iterative comment cycles between the agency and applicants.
Approval jumpstart
Eric Balchunas said on Sept. 9 that the “memecoin ETF era [is] about to kick off” with a Dogecoin ETF slated for launch on Sept. 11 under the 40 Act structure.
Balchunas said this could potentially become “the first-ever US ETF to hold something that has no utility on purpose,” considering Dogecoin was originally created as a tribute to the Doge meme.
A successful Dogecoin ETF launch could catalyze broader approval momentum for pending applications.
Seyffart previously shared that there are 92 crypto ETF applications divided across various assets, including Solana, XRP, Litecoin, and staking versions of existing products awaiting SEC decisions.
The comprehensive filing list reveals applications from major issuers, including VanEck, Grayscale, Canary, Bitwise, and Franklin Templeton, covering assets ranging from established cryptocurrencies to emerging tokens.
