The introduction of US crypto ETFs is facing setbacks as the SEC prolongs the assessment period for major digital asset funds, indicating a cautious regulatory approach. On a positive note, there is incremental progress with the SEC acknowledging a new TRX staking ETF, which brings hope to industry players.

The SEC has decided to extend the review timeline for CoinShares' XRP ETF and Litecoin ETF applications, creating further delays in the decision-making process. However, there is a glimpse of progress as the SEC has officially recognized Canary Capital's TRX staking ETF, marking a step forward in regulatory considerations. This would be the first exchange-traded fund to offer exposure to TRX with staking functions.

It is essential to note that the SEC's recognition does not imply immediate approval but indicates the willingness to evaluate new types of digital asset ETFs, including ones incorporating staking mechanisms for yield generation.

The CoinShares XRP ETF, focusing on XRP and cash holdings, is currently under a detailed regulatory review by the SEC. The Commission is seeking public feedback to ensure compliance with Exchange Act regulations. While no final decision has been made, the process has moved into a formal review phase.

Market analyst James Seyffart highlighted the delays on crypto ETFs, including those for BitwiseInvest and CoinSharesCo XRP ETFs, along with Fidelity's Bitcoin filing and the Litecoin ETF filing. Despite the setbacks, there is a positive aspect with the SEC acknowledging CanaryFunds' staked TRX filing.

Seyffart predicts that potential early SEC approvals for spot crypto ETFs are unlikely before late June or early July. A realistic timeline for approvals may extend to early in the fourth quarter, indicating a cautious regulatory stance by the SEC.

The ongoing delays also affect the 21Shares XRP ETF, Grayscale Dogecoin ETF, and five different Solana ETF applications, reflecting a trend of extended timelines for crypto ETF approvals.