Cryptocurrency ETFs from REX and Osprey Set to Launch Amid SEC Delays

According to Cointelegraph, new cryptocurrency exchange-traded funds (ETFs) from REX and Osprey have successfully passed the U.S. Securities and Exchange Commission’s (SEC) 75-day review period and are anticipated to begin trading by Friday. Bloomberg Intelligence analyst Eric Balchunas confirmed this development, noting that the lineup includes the REX-Osprey Bonk ETF, Trump ETF, Bitcoin ETF, XRP ETF, and Doge ETF. Balchunas explained that the post-effective status indicates an imminent launch, provided there are no last-minute objections from the SEC. The Doge ETF, in particular, is expected to debut on Thursday, as previously reported by Cointelegraph. Its timing is influenced by its classification under the Investment Company Act of 1940, which offers a more straightforward path to market compared to the Securities Act of 1933. The latter was used for approving spot Bitcoin ETFs last year. Balchunas highlighted that the '40 Act funds do not fully invest in spot, allowing them to proceed to market 75 days post-filing unless the SEC intervenes. Most U.S. ETFs are structured under the '40 Act, functioning as open-end investment companies capable of holding securities like futures-based funds. In contrast, '33 Act ETFs are typically reserved for physically backed commodities, such as spot Bitcoin and gold products. Bloomberg ETF analyst James Seyffart noted that there are currently 92 crypto exchange-traded products in the U.S. pipeline. Despite the progress of the REX-Osprey funds, the SEC has postponed decisions on several high-profile ETF applications from companies like Franklin Templeton, BlackRock, and Fidelity. The agency announced on Wednesday that it requires additional time to assess proposals, including those that propose staking for Ether (ETH) within the funds. Decisions on applications for XRP (XRP) and Solana (SOL) ETFs have also been delayed. Earlier this week, the SEC extended its decision timeline for Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF, setting a new deadline of November 12. These delays follow the SEC's recent clarification that certain liquid staking activities are not subject to securities laws and thus fall outside its regulatory purview. In May, the agency also determined that proof-of-stake blockchains do not inherently qualify as securities.