The U.S. Securities and Exchange Commission (SEC) has delayed a decision on whether to approve new spot exchange-traded funds (ETFs) of cryptocurrencies Litecoin (LTC), XRP (XRP), and Dogecoin (DOGE).
The delay is seen as a blow to crypto investors that were hoping to see new ETFs related to smaller cryptocurrencies such as XRP and Litecoin, as well as meme coins such as DOGE. Hopes have been running high for the Wall Street regulator to approve a new batch of crypto ETFs after spot funds that track the price movements of Bitcoin (BTC) and Ethereum (ETH) were approved last year.
Bloomberg Markets had placed the odds at 90% for SEC approval of a Litecoin ETF by year’s end, 75% for a Dogecoin ETF, and 65% for an XRP ETF. Now, it’s unclear if or when the SEC might approve the new crypto ETF applications it has received from asset managers such as Grayscale and Ark Invest.
Boosting Crypto
Much of the gains in Bitcoin over the past year have been due to the launch of about a dozen spot BTC ETFs following SEC approval of the investment vehicles in January 2024. The SEC did not outline the reasons for its delay in deciding on the new crypto ETFs.
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $82,700, having declined 12% so far this year, and having fallen about 25% since U.S. President Donald Trump’s inauguration on Jan. 20. Other crypto have also experienced big pullbacks, with LTC down 21% in the past month and XRP down 7%.
Is DOGE a Buy?
Most analysts don’t offer ratings and price targets on Dogecoin, so we’ll look at the meme coins three-month price performance instead. As one can see in the chart below, the price of DOGE has declined 59% over the last 12 weeks.
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