- REX-Osprey ETFs set to launch Friday with Bitcoin, XRP, Dogecoin, Bonk, Trump exposure
- SEC delays BlackRock, Fidelity, Franklin Templeton filings as 92 crypto ETFs await review
- The 1940 Act fast-tracks REX-Osprey ETFs while staking-based applications face extended scrutiny
REX Shares and Osprey Funds have cleared a key Securities and Exchange Commission (SEC) review, setting up their crypto ETFs to begin trading later this week. The lineup includes funds tied to Bitcoin, XRP, Dogecoin, Bonk, and the Trump token, all moving forward under the Investment Company Act of 1940.
Bloomberg Intelligence analyst Eric Balchunas explained that once the 75-day window closes, funds filed under the ’40 Act become “post-effective,” meaning they can launch unless the SEC raises a last-minute objection. The funds are expected to go live as soon as Friday.
ETF Backlog Shows Institutional Demand and Regulatory Caution
According to Bloomberg’s James Seyffart, 92 crypto ETF applications remain pending with the SEC, ranging from large-cap tokens to newer altcoins.
The backlog underscores two realities: institutional appetite for regulated crypto exposure is surging, but regulators remain cautious in approving products that stretch beyond Bitcoin and Ethereum.
Related: Osprey and Rex Propose Spot Crypto ETFs, TRUMP Token Included
How the ’40 Act Creates a Faster Path to Market
The REX-Osprey ETFs are launching through the Investment Company Act of 1940, a faster route compared to the Securities Act of 1933 used for spot Bitcoin ETFs. Under the ’40 Act, funds can automatically go live once the review period ends, while ’33 Act products require more extensive SEC review.
Spot Bitcoin and Ethereum ETFs approved in 2024 fell under the ’33 Act framework and involved lengthy evaluation. By contrast, the REX-Osprey products don’t hold physical Bitcoin but instead offer structured exposure, reflecting how issuers are adapting regulatory pathways to bring products to market more quickly.
SEC Extends Review of BlackRock, Franklin Templeton, and Fidelity Filings
While the REX-Osprey products advance, several high-profile filings face new delays. The SEC this week extended deadlines for Franklin Templeton, BlackRock, and Fidelity.
- Franklin Templeton has pending applications tied to Ethereum staking, Solana, and XRP, with decisions pushed into November.
- BlackRock’s iShares Ethereum Trust with staking features now faces an October 30 deadline.
- Fidelity’s crypto ETF filings remain under review.
These extensions follow earlier postponements for Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF, now expected in November.
BlackRock’s iShares Ethereum Trust, which incorporates staking features, faces a revised deadline of October 30. Fidelity’s filings are also awaiting review. The delays follow earlier postponements of Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF, now set for November 12.
SEC Focus on Staking ETFs Adds Complexity
The SEC has emphasized that it needs more time to review products with staking components. In May, the agency clarified that proof-of-stake blockchains are not securities, but liquid staking activities may require additional safeguards.
That distinction is adding delays for filings tied to Ethereum and Solana, even as simpler products under the ’40 Act move forward.
Related: SEC Pseudo-Outsources Crypto ETF Decisions to CFTC Through Futures Rule
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