Key Insights:
- SEC delays decisions on XRP and Litecoin ETFs filed by Bitwise and CoinShares.
- Canary Capital’s TRX ETF gains SEC acknowledgment; public comment period begins.
- The launch of the new Crypto Task Force and the DOJ’s attention to digital assets demonstrate how closely the U.S. is monitoring these assets.
The U.S. Securities and Exchange Commission (SEC) is extending its review period for several cryptocurrency-linked exchange-traded funds (ETFs). These include those tied to XRP, Litecoin, and TRON (TRX).
Due to these delays, XRP ETFs submitted by Bitwise, CoinShares, and Canary Capital have not yet been approved, as the agency carefully reviews all related products.
SEC Postpones Ruling on XRP ETFs
The SEC confirmed on May 22, 2025, that it would extend the timeline to evaluate the Bitwise XRP ETF, initially proposed under the Cboe BZX Exchange rules. This fund, if approved, would allow public trading of shares representing XRP.
After appearing in the Federal Register, the agency is asking for public comments for a period of 21 days. Interested parties can provide rebuttal comments within 35 days after the commenting period ends.
CoinShares faces a similar situation with its Nasdaq-based XRP ETF proposal. All standard timelines are being used by the SEC, with two periods open for public input. At this point, the cases are still ongoing, and the decision is not scheduled until Q2’s last quarter.
The delay was clear evidence that the SEC is now focusing on a thorough review of all applications. In both instances, the agency seeks broader feedback before determining whether to allow XRP-linked financial products to trade on public markets.
Meanwhile, XRP ETF approval odds have surged to 83% on Polymarket, up from 70% earlier this week. Ripple supporters believe the SEC will decide the case in traders’ favor by October 2025, indicating increased hope for Ripple.
LTC ETF Review Pushed Back as SEC Evaluates
CoinShares faced regulatory delays in its attempt to launch an LTC ETF. The proposal, filed on May 22, 2025, wanted to list and trade shares on Nasdaq under the current ETF rules.
Although the SEC accepted the proposal, it did not make its final decision before the original March 18, 2025, deadline.
The delay mirrors concerns raised in other filings. Regulators continue to emphasize transparency and investor protections.
The agency is evaluating whether Litecoin, like XRP, meets listing requirements for public fund exposure. These decisions could affect investors’ attitudes toward altcoin ETFs.
At the same time, Cboe BZX is still examining Fidelity’s proposed spot Bitcoin ETF. The SEC wants further reporting and new disclosure information, pointing out that March 18 is the deadline for feedback. The SEC’s cautious approach to digital assets can be seen in these developments.
Canary Capital’s TRX Fund Gain SEC Acknowledgment
Canary Capital Group filed for a staked TRX ETF with the SEC on May 22, 2025. The company wants the SEC to approve adding the TRX fund to the Cboe BZX Exchange under the BZX Rule 14.11(e)(4). According to the agency, individuals will have 21 days after the proposal is published in the Federal Register to comment.
The ETF is sent forth by Canary Capital, an LLC based in Delaware, founded in September 2024. CSC Delaware Trust Company, as trustee, made the trust’s structure official in April 2025. Shares in the Trust’s TRX tokens will be available to investors for purchase.
Crypto Regulation Tightens
Besides ETFs, the SEC is still considering other regulations for digital assets. On January 21, 2025, the SEC Commissioner Mark T. Uyeda announced he was forming the Crypto Task Force.
The unit aims to simplify registering crypto assets, ensure all information is disclosed, and ensure existing laws are easier to understand.
The Department of Justice and FinCEN are also interested in cryptocurrency regulation. From early 2025, both agencies have conducted more checks on cryptocurrency businesses. On that day, President Trump supported the U.S. leading role in digital financial innovation through an Executive Order. The directive requires agencies to team up to support strong national competitiveness and secure investment from investors.
Although the US SEC classification of digital assets as securities is being tested in a few legal cases, overall, rules are trending toward better regulation. The outcome of these ETF reviews could influence how altcoins like XRP, Litecoin, and TRX are treated in U.S. capital markets.