The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the approval of XRP and Dogecoin ETFs until June 17. This postponement highlights regulatory caution affecting institutional investments and creating temporary market uncertainty.
SEC's Delayed ETF Decisions
The SEC has pushed back the deadline for the XRP and Dogecoin ETFs, now set for June 17. This decision affects major firms like Franklin Templeton and Bitwise that applied amidst concerns over market integrity.
Impact on Institutional Investors
The delay negatively impacts institutional investors, limiting their commitment to the market and reducing potential capital inflows. Asset confidence may suffer if review periods continue to extend.
Precedents of Past ETF Delays
Similar delays regarding Bitcoin and Ethereum ETFs in the past have led to market fluctuations. Analysts are concerned that current delays might extend until October 2025, given the SEC's stringent protocols regarding altcoin ETFs.
The SEC's postponement of decisions regarding XRP and Dogecoin ETFs underscores crucial regulatory and investor safety issues, which may influence future decisions on ETFs for digital assets.
