SEC Delays Decisions on BlackRock and Franklin Templeton Crypto ETF Applications

Highlights:

• SEC delays decisions on BlackRock Ethereum staking ETF and Franklin’s Solana, XRP filings.
• SEC extends review periods for multiple pending crypto ETF applications needing more evaluation.
• Institutional demand rises as over 90 crypto ETF applications await SEC approval.

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on three major crypto exchange-traded funds (ETFs) filed on September 10. The pending applications include BlackRock’s proposal for an Ethereum staking ETF, as well as Franklin Templeton’s filings for spot XRP and Solana ETFs. 

New Deadlines Set for Crypto ETF Applications

According to recent SEC filings, the commission has set new deadlines for the delayed crypto ETF applications. Franklin Templeton’s Ethereum staking amendment now faces a deadline of November 13, while its Solana and XRP ETF applications are due on November 14. BlackRock’s proposal to allow staking in its iShares Ethereum Trust has been given a deadline of October 30. The filings did not reveal the SEC’s stance on these applications, only noting that more time is needed for review. The agency is applying the maximum extension available before it must issue a final decision.

Franklin first filed its proposals for Ethereum, Solana, and XRP products with Cboe BZX in mid-March. Later, on July 16, Nasdaq submitted BlackRock’s iShares Ethereum staking amendment. According to Section 19(b) of the Securities Exchange Act, the SEC has 45 days from publication to respond to a proposed rule change. This period can be extended to 90 or 180 days, and in some cases, by an extra 60 days if needed.

Market capitalization, exchange trading volume, and daily liquidity are major factors being discussed for qualification standards. Right now, the rule-change process requires every spot crypto ETF to get a Commission order before listing, since it is meant for new or complex products. If the SEC moves to standing rules for qualifying assets, the approval process could become faster and smoother. It would also cut down on repeated comment cycles between the agency and applicants.

Staking Hopes and Rising Institutional Interest in Crypto ETFs

The possibility of staking approval has now become a major topic in the market. Ethereum’s price has been rising in recent months, and many believe the hope of staking being added to ETFs is one of the key reasons. The SEC has already said in the past that staking alone is not a security. This statement gives supporters of staking more confidence about its approval.

Another example is the REX-Osprey Solana ETF, which was the first Solana fund. It already included staking at the time of its launch. This example has given the market something real to compare while waiting for the Ethereum decision. For now, the countdown continues for late October, when the SEC is expected to finally make a ruling.

Meanwhile, institutional interest in crypto investment products has grown in recent months, supported by the crypto-friendly stance of Donald Trump’s administration and SEC Chairman Paul Atkins. Even so, over 90 crypto ETF applications are still stuck in regulatory review. The SEC has taken a cautious approach after approving Bitcoin and Ethereum ETFs last year, and now the industry is waiting anxiously as October and November deadlines get closer.,

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