SEC Postpones Decisions on Cryptocurrency ETFs
The U.S. Securities and Exchange Commission (SEC) has postponed its decisions on two significant cryptocurrency exchange-traded fund (ETF) applications: the Bitwise Dogecoin ETF and the Grayscale Hedera ETF. Both applications are now under examination until November 12.
Details of the Applications
The agency’s announcement on Tuesday marked a delay in the timeline for NYSE Arca’s Bitwise Dogecoin ETF, which initially began its review process after submissions were made in March, with the proposal officially appearing in the Federal Register on March 17.
Simultaneously, the SEC extended the review period for Grayscale’s application related to the Hedera ETF, aligning the deadlines for both applications. In addition to these ETFs, Grayscale has been working on transitioning its established Litecoin and Bitcoin Cash trusts into ETFs. This transformation would mean that trading these assets on a national exchange could enable daily share creation and redemption, thus ensuring their prices are more closely aligned with their net asset value, unlike the larger premiums and discounts prevalent in over-the-counter trading.
Grayscale’s Precedent and Future Plans
Grayscale set a notable precedent in 2024 by converting its Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF, following a legal confrontation with the SEC. The firm is now keen to apply a similar model to its Litecoin and Bitcoin Cash offerings.
Backlog of ETF Applications
With the surge in applications for altcoin ETFs, the SEC is currently facing a substantial backlog. By July 31, at least 31 applications for spot ETFs, including notable cryptocurrencies like XRP, Solana, and Avalanche, had been submitted in the first half of 2025 alone. As of late August, the total number of crypto-related ETF proposals awaiting SEC’s verdict had ballooned to 92, with a particularly strong institutional interest observed in Solana (SOL) and XRP, which have seen multiple applications each.
Regulatory Approach
Historically, the SEC has favored extending review periods, often utilizing the maximum allowable time without making early decisions, whether approvals or disapprovals. Notable delays noted in August included the postponement of multiple crypto ETF filings, pushing deadlines into October for various proposals, underscoring the regulatory body’s cautious approach to the evolving cryptocurrency landscape.
