The SEC has delayed decisions on multiple ETF applications related to crypto assets.

Source: Blockchain Knight

The SEC postponed its decision on multiple ETF applications related to crypto assets on May 13, including those submitted by Grayscale and BlackRock.

These delays have extended the agency's review timeline, aligning with market expectations that the SEC will not approve any applications before the last quarter of 2025.

The SOL and LTC spot ETF applications submitted by Grayscale have been postponed. The new submission deadlines for both are August 11 and October 10, respectively.

The SEC has also delayed action on BlackRock's request to enable physical redemptions for its approved spot BTC ETF. There is no updated deadline for this application from BlackRock, as it mainly involves technical mechanisms rather than initial approval.

In addition, the SEC has confirmed receipt of the 19b-4 application form submitted by 21Shares for the spot DOGE ETF, thereby initiating the official review timeline for the product. This application starts the countdown for making a final decision according to the agency's statutory timeline.

A decision is expected to be made later this year.

The SEC's latest move continues its consistent pattern of conducting a step-by-step review of over 70 proposals for Crypto asset ETFs, which are currently at various stages of evaluation. On April 29, the SEC postponed its decision on another five ETF applications related to Crypto assets.

Bloomberg ETF analysts James Seyffart and Eric Balchunas described the current delay period as a normal operation.

Seyffart stated that the delay was "expected" and that the final deadlines for most affected products are not earlier than October.

Balchunas added that it is unlikely the SEC will issue substantial approvals before Chairman Paul Atkins completes internal meetings and strategic discussions with staff.

He said, "They have been meeting with outside parties. They may be formulating strategies. Only after that will it be possible to approve the relevant applications."

Regulatory Roadmap

The SEC's decision on Crypto asset ETF applications follows a multi-stage statutory process based on the proposed rule changes published in the Federal Register.

The agency usually operates with review intervals of 45 days, 90 days, 180 days, and 240 days, thereby having multiple opportunities to postpone decisions before reaching the final deadline.

The recent actions of the SEC align with its historical practices, extending the review period to the statutory maximum duration before making a decision.

Before the end of the third quarter, none of these ETF applications reached the final deadline, leaving applicants and investors to continue waiting for clarity on the regulatory direction of investment tools related to Crypto assets.