The Securities and Exchange Commission (SEC) delayed decisions on three crypto-exchange funds (ETFs) on 10 September.
The decisions made BlackRock’s Ethereum strike proposal in addition to Franklin Templeton’s Spot XRP and Solana ETF applications. The delays come when the SEC develops a generic list framework that can streamline future crypto ETF approvals.
The postponement positions these applications for possible approval during an expected batch decision window in October, in line with previous predictions.
Bloomberg ETF analyst James Seyffart noted in April that crypto ETFs would probably receive a number of approvals in October if some of the more than 90 archives reach their last deadlines.
Generic framework
The SEC has worked with US exchanges on a standardized list framework for token-based ETFs that would eliminate individual rules of rules for qualifying assets.
The initiative would enable ETF sponsors to circumvent the usual Form 19B-4 process when underlying tokens meet predetermined criteria.
According to the proposed framework, sponsors would submit registration declarations on form S-1, observe 75-day assessment periods and state products as soon as the waiting times have ended.
Market capitalization, trade volume on-Ex-Exchange and daily liquidity represent important statistics that are discussed for qualifying thresholds. The current rule changing route requires that each location safely secures a committee level before mentioning, a process designed for new or complex products.
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Switching with immediate effects for qualifying assets would shorten timelines and reduce iterative comment cycles between the agency and applicants.
JumpStart approval
Eric Balchunas said on September 9 that the Memecoin ETF era [is] At the point to start ‘with a Dogecoin ETF planned for launch on 11 September below 40 ACT structure.
Balchunas said that this potential “could become the very first American ETF ever to hold something that is of no use”, since Dogecoin was originally created as a tribute to the Doge-Meme.
A successful Dogecoin ETF launch could catalyze a broader approval momentum for current applications.
Seyffart previously shared that 92 crypto ETF applications have been divided over different assets, including Solana, XRP, Litecoin and strike versions of existing products pending SEC applications.
The extensive archiving list unveils requests from large issues, including Vaneck, Grayscale, Canary, Bitwise and Franklin Templeton, ranging from established cryptocurrencies to emerging tokens.