SEC Delays Crypto ETF Decisions for Grayscale, BlackRock, 21Shares

The US Securities and Exchange Commission (SEC) has once again delayed decisions on multiple crypto-related exchange-traded fund (ETF) applications. On May 13, the agency postponed its rulings on several proposals, including those submitted by Grayscale and BlackRock. This move extends the review timeline and aligns with expectations that no approvals will be granted before the final quarter of 2025.

Grayscale's proposed spot ETFs for Solana (SOL) and Litecoin (LTC) were among the applications deferred. The new filing deadlines for these ETFs are set for August 11 and October 10, respectively. Additionally, the SEC delayed action on BlackRock’s request to enable in-kind redemptions for its approved spot Bitcoin (BTC) ETF. This request, which focuses on technical mechanics rather than initial approval, does not have an updated deadline.

In a separate development, the SEC acknowledged the 19b-4 filing for a 21Shares spot Dogecoin (DOGE) ETF, initiating the official review timeline for this product. This filing marks the beginning of the countdown toward an eventual decision under the agency’s statutory schedule.

The SEC's latest actions are part of a broader pattern of staggered reviews across more than 70 crypto ETF proposals, which are currently in various stages of evaluation. On April 29, the SEC had already delayed decisions on five other crypto-related ETFs. Analysts have described the current cycle of delays as routine, with most affected products facing final deadlines no earlier than October.

According to analysts, the SEC is unlikely to issue substantive approvals until recently confirmed Chair Paul Atkins completes internal meetings and strategy sessions with staff. The agency's decisions on crypto ETF applications follow a multi-stage statutory process based on the publication of proposed rule changes in the Federal Register. The SEC typically operates on review intervals of 45, 90, 180, and 240 days, allowing multiple opportunities to delay decisions before reaching a final deadline.

The regulator’s recent actions are consistent with its historical practice of extending reviews to the full statutory limits before issuing decisions. No ETF in this group faces a final deadline before late in the third quarter, leaving applicants and investors awaiting further clarity on the regulatory trajectory for crypto-linked investment vehicles. The delays reflect the SEC's cautious approach to regulating the crypto market, ensuring thorough evaluations before making any final decisions.