Quick Read
- The SEC has delayed decisions on staking features for Ethereum ETFs by BlackRock and others.
- Applications for XRP and Solana-based funds also face new deadlines.
- Over 90 crypto ETFs await SEC approval, highlighting growing institutional interest.
- The delays underscore regulatory caution amidst market innovation.
The U.S. Securities and Exchange Commission (SEC) has once again delayed decisions on a series of high-profile cryptocurrency exchange-traded fund (ETF) applications, including staking functionalities for Ethereum ETFs proposed by BlackRock, Fidelity, and Franklin Templeton. Additionally, applications for XRP and Solana-based funds have also faced postponements, reflecting the regulatory body’s cautious approach amidst growing institutional interest in digital assets.
BlackRock’s Ethereum ETF Faces Staking Setback
The SEC’s latest decision affects BlackRock’s ambitious plans to introduce staking capabilities in its Ethereum ETF. Staking, a process that involves locking up Ethereum tokens to secure the network and validate transactions, has been a key feature BlackRock aimed to integrate into its fund. By doing so, the ETF would generate additional returns for investors, leveraging Ethereum’s proof-of-stake mechanism. However, the SEC has offered no timeline for when or if such features might gain approval.
BlackRock, one of the world’s largest asset managers with approximately $10 trillion under management, had hoped to provide a comprehensive Ethereum investment vehicle. The proposed ETF would not only offer exposure to Ethereum’s price but also allow investors to benefit from staking rewards. Despite the delay, industry analysts remain optimistic about the eventual approval of such products, citing the growing mainstream adoption of cryptocurrencies.
“The SEC’s cautious stance is understandable given the complexities of staking and the broader regulatory landscape,” noted James Seyffart, a Bloomberg Intelligence Analyst. “However, the demand for these products is undeniable, and it’s only a matter of time before we see more innovative crypto ETFs hitting the market.”
XRP and Solana ETFs: Another Round of Delays
In addition to the Ethereum staking ETFs, the SEC has also postponed decisions on XRP and Solana-based funds proposed by Franklin Templeton. The regulatory body cited the need for further review, extending the decision period for these applications by an additional 60 days. This means that the new deadline for the Franklin XRP ETF is now set for November 14, 2025, while other XRP-related applications face October deadlines.
The delays come at a time when Ripple, the company behind XRP, has been making strides in its legal battle with the SEC. Despite the regulatory uncertainty, XRP’s price has remained stable, hovering around the $3 mark. Market participants believe that the approval of a spot XRP ETF could significantly boost the asset’s adoption and market value.
“Ripple’s ongoing legal challenges haven’t deterred institutional interest in XRP,” said Douglas Colkitt, a crypto market analyst. “The SEC’s delays are frustrating, but they’re part of the process of integrating these assets into regulated financial markets.”
A Crowded Pipeline of Crypto ETFs
As of now, over 90 cryptocurrency ETFs are awaiting SEC approval, ranging from mainstream assets like Ethereum and Bitcoin to more niche offerings such as Dogecoin and other altcoins. The sheer volume of applications underscores the financial industry’s eagerness to tap into the growing demand for crypto investment products.
One of the most controversial recent developments in this space is the launch of the Rex-Osprey Dogecoin ETF (DOJE), the first U.S. ETF tied to Dogecoin. Unlike Bitcoin ETFs, which directly hold the asset, the Dogecoin ETF uses derivatives to gain exposure, complying with the Investment Company Act of 1940. While critics argue that such products institutionalize speculation, supporters believe they provide a gateway for mainstream investors to access cryptocurrencies in a regulated environment.
“The Dogecoin ETF represents a cultural milestone as much as a financial one,” said Maja Vujinovic, CEO of FG Nexus. “It shows how community-driven assets can achieve legitimacy within traditional financial structures.”
Implications for the Crypto Industry
The SEC’s delays highlight the ongoing tension between regulatory caution and market innovation. While the agency’s hesitance may slow the rollout of new products, it also underscores the need for robust frameworks to ensure investor protection and market stability. For asset managers like BlackRock and Franklin Templeton, these delays are a temporary hurdle in their quest to bring crypto ETFs to the masses.
Meanwhile, the broader crypto market continues to evolve, with institutional players and retail investors alike showing increasing interest in digital assets. The eventual approval of staking-enabled ETFs and other innovative products could mark a significant step forward for the industry, bridging the gap between traditional finance and the burgeoning world of cryptocurrency.
As the SEC navigates this complex regulatory landscape, the crypto industry watches closely, hopeful for a future where innovative investment products can coexist with robust investor protections.