The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on multiple high-profile crypto ETF proposals, including those tied to Ethereum staking and spot XRP. While the move wasn’t entirely unexpected, it adds a new layer of uncertainty for investors hoping for regulatory clarity around altcoin-based exchange-traded funds.
Ethereum, XRP and Dogecoin ETFs Put on Hold
In a document published on May 20, 2025, the SEC officially extended the timeline for ruling on ETF proposals from Grayscale, Fidelity, Invesco, and other major asset managers. These include:
- Grayscale Ethereum Trust (ETHE)
- Fidelity Ethereum ETF (with staking mechanisms)
- Invesco Galaxy Ethereum ETF
- Spot XRP and Dogecoin ETFs
The SEC filing states that additional time is necessary to evaluate public comments and market impact before making a final decision. This delay pushes potential approval windows toward mid-to-late July 2025.
Market Reacts Calmly — For Now
Despite initial concerns about the delay, market sentiment appears stable. Ethereum continues to trade above $2,400, and XRP is hovering near the $2.30 mark — both showing resilience amid the news.
According to ETF Store President Nate Geraci, this is “nothing to see here,” suggesting that delays are procedural and not a sign of rejection. Geraci added that he still expects approvals to go through.
This subtle distinction is important: the delay stems from complexities around taxation and staking mechanics — not a fundamental opposition to the ETFs themselves.
What’s Behind the Delay?
The SEC’s hesitance revolves around two main issues:
- Staking in Grantor Trusts: Unlike Bitcoin ETFs, Ethereum ETFs may include staking features that generate passive rewards. This raises questions about how those rewards are taxed, especially within grantor trust structures used by most ETF products.
- XRP and DOGE Classification: Both assets have faced intense scrutiny over whether they should be treated as securities or commodities, which affects how and whether they can be packaged into ETFs.
Until these regulatory gray zones are clarified — particularly by the IRS and CFTC — the SEC is likely to continue dragging its feet.
Why It Matters for the Crypto Market
If approved, these altcoin ETFs could usher in a new wave of institutional investment into Ethereum, XRP, and even meme coins like Dogecoin. The launch of Bitcoin spot ETFs earlier this year triggered billions in inflows and record-high daily closes. A similar outcome for ETH or XRP could significantly shift altcoin dominance and investor behavior.
For now, however, the market remains in wait-and-see mode.
Final Thoughts: Approval Still Likely — But Not Imminent
While delays are frustrating for crypto investors, they’re part of a familiar SEC playbook. The good news? There are no outright rejections — and no indications that the commission is pulling back from ETF expansion altogether.
As July approaches, anticipation will continue to build. If the SEC greenlights these altcoin ETFs, we could be looking at the next major milestone in the institutional adoption of crypto.
