The Securities and Exchange Commission (SEC) extended its decision deadline for Franklin Templeton’s Solana and XRP ETF proposals to November 14, using the maximum 60-day extension authority before issuing final rulings.
The regulator also postponed BlackRock’s iShares Ethereum Trust staking amendment to October 30, adding 45 days to the original timeline.
Source: SEC.govSEC Needs More Time to Decide
SEC filings indicate the agency needs “sufficient time to consider” the proposals without revealing approval or denial leanings. The delays follow Chair Paul Atkins’ July 31 “Project Crypto” initiative, designed to modernize securities rules and unify digital asset frameworks.
Franklin’s Cboe BZX filings for Ethereum, Solana, and XRP products were submitted in mid-March, while Nasdaq filed BlackRock’s Ethereum staking amendment on July 16. The extensions represent standard regulatory procedure under Section 19(b) of the Securities Exchange Act.
Bloomberg analysts project over 95% probability for Solana and XRP ETF approvals this year despite continued delays.
Prediction markets support institutional optimism with Solana ETF approval odds reaching 99% on Polymarket.
Source: PolymarketThe postponements contribute to a growing backlog, with 92 crypto ETF applications awaiting SEC review as of August 29.
Recent delays encompass Bitwise Dogecoin ETF, Grayscale Hedera Trust, Truth Social Bitcoin and Ethereum ETF, and multiple altcoin proposals.
Additionally, Grayscale’s Hedera Trust was pushed to November 12, and various XRP, Dogecoin, and Litecoin proposals are scattered across October and November deadlines.
Strategic Delay Pattern Points to Generic Listing Overhaul
Bloomberg Senior ETF Analyst Eric Balchunas attributes delays to SEC coordination with generic listing standards requested by Cboe and NYSE in July.
The exchanges proposed amendments allowing automatic crypto ETF listings without case-by-case regulatory review. Current guidelines require separate proposed rule changes for each crypto ETF application, creating a 240-day review process.
Generic listing standards would eliminate rigorous evaluation requirements for certain products meeting predetermined criteria.
Balchunas expects “flood of ETFs probably in a couple months” following generic standards approval anticipated in early October.
The streamlined process would accelerate multiple product launches simultaneously, rather than staggered separate approvals.
ETH staking integration appears likely with the SEC’s openness to “working with issuers and solving problems” under the current leadership.
BlackRock has argued since May that Ethereum ETFs remain incomplete without staking functionality enabling yield generation.
The regulator previously delayed 21Shares Core Ethereum ETF staking decisions alongside the Trump media company Truth Social’s proposals.
Industry giants, including Grayscale and 21Shares, maintain applications for Ethereum staking ETFs while pursuing trust-to-ETF conversions for existing altcoin products.
Grayscale seeks authorization for Litecoin, Solana, Dogecoin, XRP, and Avalanche ETF structures.
Institutional Momentum Builds Amid Regulatory Uncertainty
BlackRock engaged the SEC’s Crypto Task Force in May discussions about staking treatment within exchange-traded products and tokenization potential for traditional securities.
The world’s largest asset manager operates BUIDL, a $2.9 billion tokenized Treasury fund. The firm argued that staking allows complete Ethereum ETF functionality through proof-of-stake network participation.
Canadian and European markets already offer crypto ETFs with staking, while U.S. regulatory approval remains pending.
Additionally, the Crypto Council for Innovation, backed by a16z crypto, Consensys, and Kraken, petitioned the SEC for staking regulatory clarity.
Current uncertainty affects over 70 crypto ETF applications spanning diverse digital assets beyond Bitcoin and Ethereum. Solana treasury companies are positioning tens of billions in accumulation funds, anticipating ETF approvals.
President Trump’s pro-crypto stance since his January inauguration has created regulatory optimism. While the SEC is working to restructure regulations, Chair Atkins declared “Crypto’s time has come” at the OECD Roundtable on Global Financial Markets.
The systematic delay pattern is likely a coordinated strategy rather than application-specific concerns.
Generic listing standards approval could trigger simultaneous product launches addressing accumulated demand across altcoin categories.
Source: PolymarketXRP maintains 92% approval probability on Polymarket, climbing from 64% in August. Dogecoin stands among the meme coins with favorable 94% odds, more than doubling from 44% in June.
Amid all this, institutional demand continues to build despite regulatory uncertainty, with Bitcoin spot ETFs recording total net inflows of $757 million yesterday, marking the third consecutive day of net inflows.
At the same time, Ethereum spot ETFs saw total net inflows of $172 million, with BlackRock’s ETHA leading at $74.5 million.
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