New Wave of Crypto ETFs Set to Launch as SEC Delays Major Players
This Friday, a new set of cryptocurrency exchange-traded funds from REX and Osprey will start trading. This is the latest news in the fast
Quick overview
- REX and Osprey are launching new cryptocurrency exchange-traded funds this Friday, following a successful 75-day review by the SEC.
- The funds will track various cryptocurrencies including Bonk, Trump coin, Bitcoin, XRP, and Dogecoin, but do not invest directly in spot bitcoin assets.
- The crypto ETF market is experiencing significant regulatory delays, with 92 products currently awaiting approval from US regulators.
- While the SEC has approved Bitcoin and Ethereum spot ETFs, other innovative products face scrutiny, reflecting the commission's cautious approach to new digital assets.
This Friday, a new set of cryptocurrency exchange-traded funds from REX and Osprey will start trading. This is the latest news in the fast-changing world of crypto ETFs, as authorities continue to deal with a huge number of applications.
Eric Balchunas, an analyst at Bloomberg Intelligence, said that the REX-Osprey lineup has passed the 75-day review period set by the Securities and Exchange Commission. It comprises funds that track Bonk, Trump coin, Bitcoin, XRP, and Dogecoin. “Post-effective means that it’s going to launch, basically,” Balchunas said. He said that these items are set to come out very soon, unless the SEC objects at the last minute.
The Investment Company Act of 1940 sets up the funds in a way that makes it easier for them to get to market than the Securities Act of 1933 framework used for spot Bitcoin ETFs that were approved last year. This 1940 Act structure lets funds start up on their own after 75 days unless authorities step in, but these products don’t invest directly in spot bitcoin assets.
Regulatory Bottleneck Emerges
REX-Osprey is excited about its impending releases, but the larger crypto ETF market is facing a lot of regulatory problems. The SEC has put off a number of important applications from big companies like BlackRock, Franklin Templeton, and Fidelity, making the review periods as long as they can be.
Franklin Templeton’s plans for Ethereum staking, Solana, and XRP ETFs now have deadlines that go into November. BlackRock’s plan to introduce staking to its iShares Ethereum Trust has been put back to October 30. Even though the SEC has already said that some liquid staking activities don’t fall under securities regulations, these delays are nonetheless happening.
The government is being careful with new digital assets and features like proof-of-stake staking, even though it has become more open to cryptocurrencies since the Trump administration took over.
Pipeline Swells with Applications
James Seyffart, an analyst for Bloomberg ETFs, says that there are an amazing 92 crypto exchange-traded products waiting for approval from US regulators. This shows how much institutional interest there is in digital asset investment vehicles. Recent delays have affected a wide range of products, such as Bitwise’s Dogecoin ETF, Grayscale’s Hedera ETF, and a number other Solana and XRP products from different companies.
The regulatory bottleneck has made a big difference in the crypto ETF industry. Bitcoin and Ethereum spot ETFs have been approved by regulators and are doing well on the market, but other cryptocurrency products are still under a lot of scrutiny and their release dates are unclear.
Market Implications
The different ways that regulators treat cryptocurrencies show that the SEC is picky about which crypto innovations it supports. Products that use the 1940 Act framework seem to have fewer problems, but they don’t provide you as much direct exposure to cryptocurrencies as their spot counterparts. Meanwhile, plans that are more creative and include staking yields or tracking other cryptocurrencies face a lot of regulatory resistance.
In July, SEC Chair Paul Atkins unveiled “Project Crypto,” which pledged to update the laws for digital assets. But the continued delays show that the commission is still hesitant to add new products beyond Bitcoin and Ethereum, even if demand in the industry is still growing.
The REX-Osprey funds are slated to debut on Friday. They offer investors additional exposure to cryptocurrencies, but they also show how regulatory limits are still shaping the changing market for digital asset investment products.
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