The US Securities and Exchange Commission (SEC) has extended its decision timeline for proposed exchange-traded funds (ETFs) tied to Polkadot (DOT) and Hedera (HBAR) until June 11. This decision affects proposals from Grayscale to convert its Polkadot Trust into a spot ETF and Canary Capital’s plan to list a spot HBAR ETF. Additionally, the SEC has delayed a decision on Bitwise’s proposed joint Bitcoin (BTC) and Ethereum (ETH) ETF until June 10. The extensions were made to allow for more time for careful consideration of the proposals and any public comments received.
The SEC’s decision to extend the timeline comes as the agency faces a significant backlog of crypto-related filings. Currently, the agency is reviewing 72 digital asset ETF proposals, including single-asset, dual-asset, and multi-asset funds tied to various tokens beyond Bitcoin and Ethereum. The increase in applications follows the approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July of last year, which allowed for greater exposure to the crypto market through regulated investment vehicles.
The surge in filings coincides with a shift in regulatory stance under the Trump administration, with the SEC rolling back enforcement actions against crypto firms and holding public roundtables to update digital asset policy. The upcoming roundtable on crypto custody frameworks, scheduled for Friday, highlights the agency’s focus on investor protection standards in evaluating new crypto products. While the SEC’s actions signal greater openness, the agency remains cautious in ensuring that new crypto offerings meet regulatory standards.
Disclosure: CryptoSlate has received funding from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports the coverage, full editorial independence and control over content published is maintained. The delay in the SEC’s decision on ETFs tied to Polkadot and Hedera reflects the agency’s commitment to thorough review and consideration of proposals in the rapidly evolving crypto market landscape. Investors and industry players will be eagerly awaiting the SEC’s decisions on these ETF proposals and monitoring the agency’s approach to regulatory oversight in the digital asset space.
