The U.S. Securities and Exchange Commission has delayed decisions on three cryptocurrency exchange-traded fund proposals. Grayscale’s request to convert its Polkadot Trust and Canary’s application to list a Hedera (HBAR) ETF will now receive decisions by June 11.
Bitwise’s Ethereum and Bitcoin ETF proposal is scheduled for a decision on June 10. These updates were in publicly available filings published on Thursday. Both Grayscale and Canary made filings earlier this year.
The SEC initially intended to rule by this week’s end. The agency, though, has opted to grant an extension on its review timeline. The step is indicative of how cautious the SEC is as it continues to review a broad assortment of crypto fund applications.
Bitwise awaits a decision on dual BTC-ETH ETF
The move by the SEC is part of a growing trend to scrutinize more crypto investment offerings. The regulator has been seeing dozens of recent applications. Several companies are trying to move into the market by offering ETFs that reference different digital assets. Included are popular tokens such as Polkadot and Hedera.
Bitwise, already involved in crypto investing, is waiting to hear about its dual Bitcoin and Ethereum ETF. This fund would provide exposure to the two largest cryptocurrencies in one product. The new June 10 timeline gives the SEC more time to consider the proposal and its potential impacts on the market.
The holdup is amid growing interest from companies looking to provide crypto-based investment offerings. The landscape for such uses has changed. The spot Bitcoin ETFs have been permitted by the SEC since January 2024 and spot Ethereum ETFs in July, as a result of a judicial victory for Grayscale compelling a policy shift.
SEC reviews crypto ETF filings case-by-case
These recent extensions indicate that the SEC still is examining every case on an individual basis. The agency seems to be paying attention to particulars, risk in the market, and protection for investors. It has not indicated any shift in overall direction, but this current tempo is more receptive than in previous years.
There will be a roundtable on crypto custody on Friday. It has the potential to provide more information on how the SEC is thinking regarding digital asset regulation.
Until then, Grayscale, Canary, and Bitwise await as the commission takes its extra time to review. The crypto market, on its part, looks on with interest at what these pronouncements will hold for future ETF approvals.
