SEC postpones decision on multiple crypto-related ETF applications

‍Article Source: Blockchain Knight

The SEC postponed its decisions on multiple ETF applications related to Crypto assets on May 13, including those submitted by Grayscale and BlackRock.

These delays extend the agency's review timeline, in line with market expectations that the SEC will not approve any applications until the last quarter of 2025.

Grayscale's SOL and LTC spot ETF applications were postponed. The new submission deadlines for the two are August 11 and October 10, respectively.

The SEC also postponed BlackRock's action to enable physical redemption requests for its approved spot BTC ETF. There is no updated deadline for this BlackRock application as it mainly involves technical mechanisms rather than preliminary approval.

In addition, the SEC confirmed receipt of the Form 19b-4 application for the Spot DOGE ETF submitted by 21Shares, thereby initiating the formal review timeline for the product. This application begins the countdown to a final decision according to the agency's statutory timeline.

A decision is expected later this year

The SEC's latest move continues its consistent pattern of step-by-step review of more than 70 Crypto asset ETF proposals, which are still in various stages of evaluation. On April 29, the SEC postponed its decisions on five additional Crypto asset-related ETFs. Bloomberg ETF analysts James Seyffart and Eric Balchunas described the current delay cycle as routine operations. Seyffart said the delays were "expected" and that most of the affected products have final deadlines no earlier than October. Balchunas added that the SEC is unlikely to issue substantive approvals until recently confirmed chairman Paul Atkins completes internal meetings and strategy sessions with employees.

He said: "They have been meeting with outsiders. They are probably developing a strategy. After that, it is possible to approve the application."

Regulatory Roadmap

The SEC's decisions on crypto asset ETF applications follow a multi-stage statutory process based on the publication of proposed rule changes in the Federal Register.

The agency typically operates with review intervals of 45 days, 90 days, 180 days and 240 days, giving it multiple opportunities to delay a decision before reaching the final deadline.

The SEC's recent actions are consistent with its historical practice of extending the review period to the statutory maximum period before making a decision.

Before the end of the third quarter, none of these ETF applications reached the final deadline, which left applicants and investors waiting to clarify the regulatory direction of investment tools related to Crypto assets.