Crypto ETF Dreams on Hold: SEC Delays Grayscale and 21Shares Proposals

The U.S. Securities and Exchange Commission (SEC) has officially extended its review period for several spot crypto ETF proposals, including those from 21Shares and Grayscale. The delay affects the 21Shares Core XRP Spot ETF as well as Grayscale’s proposed Dogecoin and XRP Spot ETFs, pausing the original decision deadlines of May 21–22.

The agency has initiated formal proceedings to assess whether the proposals comply with Section 6(b)(5) of the Exchange Act, which focuses on investor protection and fraud prevention.

The 21Shares Core XRP Trust aims to track the CME CF XRP-Dollar Reference Rate, with Coinbase Custody as the asset custodian. Grayscale’s Dogecoin and XRP Trusts plan to follow CoinDesk's respective price indices. All three ETFs would issue shares in blocks of 10,000 and hold only the digital assets in question.

Commenting on the SEC’s decision, Bloomberg ETF analyst James Seyffart noted on X that such delays are expected and routine. While several XRP-related ETF deadlines are approaching, Seyffart does not anticipate any approvals before late June or early July—adding that a more realistic timeline might be early Q4.

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Spot crypto ETFs have generated significant interest among U.S. investors for offering exposure to digital assets without the need to hold them directly. Despite greenlighting Bitcoin and Ethereum ETFs last year, the SEC continues to be cautious with other crypto-based products.

While industry participants had hoped quicker approvals would signal the crypto market’s readiness for broader financial integration, Seyffart's outlook suggests continued regulatory hesitation.

The SEC clarified that its extension doesn’t indicate a final stance on the applications. The agency has opened a public comment period for 21 days following publication in the Federal Register, with rebuttals due within 35 days.